Core Lithium Secures A$290 Million Funding to Restart Finniss with Mining Underway

Final Investment Decision and Funding Package

Core Lithium Ltd (ASX:CXO) has taken a decisive step to revive its Finniss Lithium Project in the Northern Territory, approving the Final Investment Decision (FID) to restart operations. The move comes with a fully funded restart package of approximately A$290 million, blending strategic partner funding and an institutional equity raise. This financial backing underpins a 20-year mine life with a pre-tax net present value of A$1.1 billion and free cash flow generation forecast at A$1.7 billion, based on conservative spodumene concentrate pricing.

The funding package includes US$120 million (A$170 million) from a consortium of strategic partners including Glencore International AG, InfraVia Capital Partners, and Nebari Natural Resources Credit Fund II, alongside a A$120 million equity raise to institutional and sophisticated investors. The first tranche of the equity raise, approximately A$53 million, closed in March, while the remaining A$67 million tranche awaits shareholder approval at a General Meeting scheduled for 5 May 2026. Convertible notes and senior secured debt facilities complement the capital structure, offering flexibility and competitive cost of capital.

This comprehensive funding solution ensures Core is well-positioned to execute its staged restart strategy, which the Managing Director Paul Brown describes as "disciplined, low risk and capital efficient." The strategy targets first ore extraction from the Grants open pit in the June quarter, with spodumene concentrate production from the Dense Media Separation (DMS) plant expected by the September quarter.

Mining and Processing Progress

Execution is already underway. Core awarded a A$50 million surface mining contract to NRW Pty Ltd for the Grants deposit, marking a critical milestone in the restart. This contract covers all key activities to deliver material to the Grants Run of Mine pad, enabling accelerated production timelines at lower initial capital costs. Ore from Grants is slated for processing in the September quarter, with concentrate shipments expected to commence early in December 2026.

Simultaneously, early works at the BP33 underground deposit have commenced post-quarter, including boxcut development and infrastructure establishment. BP33 offers a long-life, low-cost underground production base with forecast unit mining costs around A$78 per tonne of ore. The boxcut is fully dewatered, and earthworks are progressing as planned, positioning the project for mining contract award and contractor mobilisation in the near term.

On the processing front, Core plans targeted upgrades to the existing plant to enhance recovery rates and operational efficiency. These brownfields modifications include integrating a purchased crushing circuit, rectifying the mica removal circuit, and installing a Reflux Classifier gravity circuit to improve liberation and tailings management. The plant is expected to operate at a nameplate throughput of 1.2 million tonnes per annum, leveraging proven infrastructure and aiming for improved spodumene concentrate recovery beyond the previous 65% benchmark.

Financial Position and Strategic Sales

Core closed the March quarter with a robust cash position of A$91.6 million, bolstered by the first tranche of the equity raise. Additional proceeds from convertible note funding of approximately A$37 million were received post-quarter. The company is awaiting shareholder and Foreign Investment Review Board approvals for the second tranche of equity and convertible notes, which would further bolster cash reserves.

In a strategic move to support the restart, Core sold around 5,100 dry metric tonnes of spodumene concentrate stockpile to Glencore International AG at a price equivalent to US$2,023 per tonne CIF China. Payment for this sale is expected in the June quarter. Notably, Core retains a substantial lithium fines stockpile of approximately 75,000 tonnes, providing additional potential funding sources.

These developments follow the recent surface mining contract awarded to NRW Pty Ltd, which is pivotal for the Grants open pit restart and aligns with Core’s broader execution timeline.

Corporate Governance and Exploration

On the leadership front, Core formalised Paul Brown’s role as Managing Director, reflecting confidence in his stewardship as the company advances the Finniss restart. The board also welcomed Mark Hine, a seasoned mining engineer with over 35 years of experience, as a Non-Executive Director, enhancing operational and underground mining expertise.

Exploration efforts continue alongside the restart, with ongoing lithium drilling and studies aimed at resource growth and potential expansion, particularly at the Blackbeard area near Grants. Additionally, Core is evaluating commercial options for its Shoobridge Gold Project, located within a prolific gold region, leveraging elevated gold prices to potentially unlock value beyond its lithium focus.

Environmental and safety standards remain a priority, with no significant incidents reported during the quarter. Water management and pit dewatering activities have progressed well, reducing residual water levels and preparing mining sites for upcoming operations.