Lithium miner raises funds to tap into Top End resource
Adelaide-based Core Lithium today completed a major equity raise to turbocharge operations at the Finniss lithium mine it opened south of Darwin last year.
Photo: Core Lithium
The Flinders Street-headquartered miner today announced the successful completion of a $100 million institutional placement, giving the firm the funds to ramp-up its Northern Territory operations.
A further $20 million from existing shareholders is also on the cards via a share purchase plan, with the total funds to also support the development of an underground lithium mine on the territory’s Cox Peninsula and other lithium exploration initiatives.
The $100 million equity raise builds on a further $100 million secured by Core Lithium in October 2022, with CEO Gareth Manderson today welcoming the support of new and existing investors in the placement.
“The proceeds provide us with the opportunity to continue progressing our strategic priorities including optimising recoveries and delivering on our growth objectives,” said Manderson, who was appointed CEO in August last year.
“In addition, we are excited with our planned exploration program over the next 12 months which aims to deliver mine life extensions and further resource definition at Finniss.”
The placement saw Core Lithium issue 250 million new fully paid ordinary shares at 40 cents per share, representing a 26.6 per cent discount to the company’s last closing price of $0.55.
When announcing the raise yesterday, the company said the placement followed its “successful transition from developer to miner under a new leadership team”, having successfully delivered its first two shipments of lithium ore recently.
The firm notes that its next mine on the Cox Peninsula – BP33 – “has the potential to be the cornerstone asset for the company”.
In conjunction with cash on hand, Core Lithium will use $45-50 million of the $100 million to complete development of its BP33 mine and improve site access.
Between $20-25 million will be used to optimise the Finniss site, while $35-40 million is earmarked for exploration initiatives across the Northern Territory at sites including Anningie, Barrow Creek and Shoobridge.
“As we continue to ramp up, we are actively implementing improvement projects to optimise operations and enhance lithia recoveries and plant utilisation to maximise our leverage to strong lithium market conditions in the wake of continued scarce supply and strong demand for lithium,” Manderson said yesterday.
