CXO Announces A$100m Institutional Placement and A$20m SPP to Support Growth and Financial Flexibility during Finniss Ramp-Up

Core Lithium Ltd (ASX: CXO), the Australian lithium miner, has announced a significant equity raising initiative to support its near-term growth plans and provide financial flexibility during the ramp-up of its flagship Finniss Lithium Project.

Equity Raising to Drive Growth Projects and Optimise Production

The equity raising aims to support Core's near-term growth projects, including the BP33 early works and the ongoing exploration program, while also providing financial flexibility for the company as it continues to ramp up and optimise production at the Finniss Lithium Project.

Institutional Placement and Share Purchase Plan

Core Lithium is embarking on a fully underwritten institutional placement to raise A$100m. Furthermore, existing eligible shareholders will have the opportunity to participate via a non-underwritten Share Purchase Plan, targeting an additional A$20m in funds.

Core Lithium's Strategic Priorities

Under the guidance of a new leadership team, Core Lithium is progressing with its key strategic priorities. The company plans to deliver near-term growth through its cornerstone asset, BP33, with a Final Investment Decision expected in Q1 2024.

Successful Transition to Mining

Having successfully transitioned from developer to miner, Core Lithium achieved its first concentrate production in February 2023 and is currently operating the Grants open pit, its starter operation.

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The company has already completed the first two spodumene concentrate shipments.

Utilizing the Equity Raising

The proceeds from the equity raising will enable Core Lithium to advance its near-term growth projects, preserve balance sheet flexibility during the Grants ramp-up, and fund key initiatives. This includes progressing BP33 early works, optimising plant operations to increase recoveries, conducting targeted exploration activities, and completing studies to evaluate additional growth project options.

Core Lithium's active pursuit of growth opportunities and commitment to financial flexibility demonstrates its dedication to maximising shareholder value and solidifying its position in the lithium mining industry.

Disclaimer:
This announcement contains forward-looking statements that are subject to various risks and uncertainties. Actual results may differ materially from the statements made here. Readers should not rely solely on the information provided and should consider obtaining independent professional advice before making any investment decisions.

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