Core Lithium Raises $50M to Accelerate Finniss Lithium Project Development

Core Lithium’s Capital Raise Bolsters Finniss Project

Core Lithium Ltd (ASX – CXO) has announced a significant capital raise, securing $50 million through a two-tranche institutional placement priced at $0.105 per share. This equity injection, supported by a fresh cohort of institutional investors including the boutique asset manager Fourth Sail Capital LP, marks a pivotal step in advancing the company’s flagship Finniss Lithium Project in the Northern Territory.

The placement, which will see approximately 476 million new shares issued, is designed to accelerate critical early-stage development activities. These include the recommencement of the BP33 boxcut and decline development, as well as operational readiness efforts that are essential to moving the project towards a Final Investment Decision (FID). The first tranche, raising around $29.2 million, is set to settle in early September, while the second tranche, worth approximately $20.8 million, awaits shareholder approval anticipated in October.

Engaging Shareholders Through a Share Purchase Plan

Alongside the institutional placement, Core Lithium has launched a Share Purchase Plan (SPP) aimed at raising up to $10 million from eligible shareholders in Australia and New Zealand. Offered at the same price as the placement, the SPP allows existing investors to subscribe for up to $30,000 in additional shares, providing a pathway for retail participation in the company’s growth story.

The funds raised through the SPP will primarily support working capital requirements, complementing the placement proceeds that are earmarked for project advancement. The company has emphasized flexibility in the SPP, retaining discretion to accept oversubscriptions or scale back applications, reflecting a prudent approach to capital management.

Strategic Deployment of Capital

Core Lithium’s CEO, Paul Brown, highlighted the strategic importance of this funding milestone. The capital will directly finance long-lead procurement, underground development at BP33, and operational readiness activities identified in the recent Restart Study. This focused deployment aims to de-risk the project and strengthen Core’s balance sheet ahead of securing further strategic funding.

With approximately $5.8 million allocated to long-lead items, $25 million to BP33 boxcut and decline development, and $9.2 million to operational readiness, the company is positioning itself to maintain momentum and cost confidence as it approaches the FID. The balance of funds will cover general working capital and the costs associated with the equity raising.

Looking Ahead

Shares issued under both the placement and SPP will rank equally with existing shares, ensuring new investors participate fully in Core Lithium’s future upside. The company’s share price reflected a modest discount of 12.5% to recent trading levels, a common feature in capital raises designed to attract institutional interest.

As Core Lithium prepares for the shareholder meeting to approve the second tranche and awaits the outcome of the SPP, market participants will be watching closely to gauge investor appetite and the company’s progress towards unlocking value from its lithium assets.