Core Lithium taps insto investors

Core Lithium has kicked off a $100 million share placement to advance exploration and construction efforts at the Finniss lithium project in the Northern Territory.

Canaccord Genuity is lead and bookrunner to the institutional raising, which has shares on offer at $1.13 representing a 13 per cent discount on its five day volume weighted average price.

Some 97.1 million shares will be available under the placement in a bid to raise the $100 million with around a quarter of the proceeds set to go towards further resource definition drilling at Finniss.

Funds will also advance development of a proposed underground mine and general working capital.

The raising comes a day after China’s largest lithium producer Ganfeng New Energy Technology Development sold down 30.8 million shares in the company for about $37.4 million.

Ganfeng is no longer a substantial shareholder in Core Lithium as a result, but has affirmed that it remains a supportive partner of the business via its binding offtake agreements.

Core Lithium has affirmed it is on track for first lithium concentrate production in the first half of 2023.

Chief executive Gareth Menderson said the company would be well-funded for its exploration campaign following the placement.

“Recent exploration success at BP33, Core’s proposed second lithium mine, supports the deployment of growth capital and project development, enabling Core to capitalise on the current strength in lithium prices,” he said.

“We are looking forward to delivering first production of lithium concentrate from Finniss in the first half of 2023.”

The company raised around $140 million for the project in August last year.

Prior to entering a trading halt, Core Lithium shares last changed hands at $1.10.