Core Lithium Ltd injects A$25m into SPP, bringing fundraising proceeds to A$150m


Core Lithium Ltd (ASX:CXO) has raised A$25m under its recently completed and strongly backed Share Purchase Plan (SPP), which is significantly higher than the initial target of A$15m Australian dollars.

The SPP complemented the company’s recent placement with sophisticated and institutional investors to raise A$91 million and Ganfeng’s recent equity investment of A$34 million, bringing total proceeds to A$150 million.

Last month, the company launched an SPP to raise A$15 million at 31 cents per share as part of the capital raise to fund the development of the Finniss Lithium project.

Oversubscribed SPP

The SPP offered eligible shareholders the opportunity to subscribe for up to A$30,000 of new fully paid ordinary shares of the company and a minimum of A$2,500 of new shares, without brokerage or commission.

The company received total requests for more than $43 million, almost three times its target of AU$15 million.

Keeping in mind the large demand for the SPP, Core has decided to increase the amount raised to 25 million Australian dollars.

SPP applications will all be reduced according to the terms of the SPP offering document.

Product use

Core Lithium plans to use the proceeds from the SPP and the Offering to develop and construct the Finniss Lithium Project.

The availability of additional amounts from the oversubscribed SPP will help the Company accelerate the evaluation of acquisition and exploration opportunities.

The funds will also help expand resource drilling on high priority pegmatite targets and lithium projects and for working capital.

PPS Details

As part of the fundraising initiative, Core will issue approximately 81 million new fully paid shares of common stock, which will rank pari passu with existing shares.

The new shares will be issued at A$0.31 each, the same price offered in the placement and are expected to be awarded on September 9, 2021.

Core Lithium’s Board of Directors thanks shareholders for their continued support and endorsement of the company’s business model as it moves toward a final investment decision on the Finniss Lithium project.

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