Core Lithium has secured firm commitments for a non-underwritten two-tranche placement, with the intention to raise A$50m ($32.6m) before costs.
The company will issue 476.2 million new fully paid ordinary shares at A$0.105 each.
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The placement has garnered strong support from new investors, and Core Lithium plans to complement this with a share purchase plan (SPP) for Australian and New Zealand shareholders, also at A$0.105 per share, aiming to raise an additional A$10m.
The proceeds from the placement will be channelled into the Finniss Lithium Project.
The funds will be specifically used for ordering long-lead items, resuming development at the BP33 boxcut and decline, operational readiness and general working capital needs. The SPP funds will further bolster working capital.
Operations at the Finniss project near Darwin were halted in January 2024 following an 85% decline in spodumene concentrate prices over the preceding year.
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By GlobalDataArgonaut Securities and Canaccord Genuity (Australia) are joint lead managers and bookrunners for the placement, with Mills Oakley providing legal advice.
The placement’s first tranche will issue approximately 278.1 million new shares to raise around A$29.2m, with settlement expected on 3 September 2025.
The second tranche, subject to shareholder approval, will issue around 198.1 million new shares to raise approximately A$20.8m.
The offer price represents a 12.5% discount on the last traded share price on 26 August.
Core Lithium CEO Paul Brown said: “We are very pleased with the strong support received from new institutional investors across the Americas and Australia for this heavily supported placement. This funding milestone strengthens our balance sheet and provides the capital to advance the Finniss Lithium Project towards a positive final investment decision.
“Importantly, the equity raising makes a material contribution towards the pre-production capital requirement for Finniss by directly funding critical early works, including the BP33 box cut and decline, while also covering a portion of the operational readiness costs identified in the Restart Study.
“This ensures we can progress underground development, accelerate operational readiness and maintain flexibility as we finalise strategic funding solutions to meet the remaining capital needs. We remain focused on delivering value for all shareholders as we progress Core’s growth and development objectives.”
Core retains discretion over the SPP, which could result in raising more or less than the targeted A$10m, depending on oversubscriptions or scaled-back applications, Brown added.
