Core Lithium has completed the second tranche of a A$120 million equity raise, securing A$67 million and shareholder approval for convertible notes, positioning the Finniss Lithium Project for continued development.
- Second tranche raises A$67 million via 320 million shares
- Shareholders approve US$44 million convertible notes tranche
- Total new funding now around A$157 million net of costs
- Finniss operations progressing with open pit and underground works
- Convertible notes completion pending Foreign Investment Review Board approval
Significant Equity Raise Boosts Finniss Funding
Core Lithium Ltd (ASX:CXO) has successfully closed the second tranche of its A$120 million equity raising, issuing roughly 320 million new shares to raise about A$67 million before costs. This follows shareholder approval at the company’s May 5 meeting and adds to the first tranche completed earlier this year, bringing total equity funding to around A$157 million net of costs. This capital injection is a major step in financing the Finniss Lithium Project’s restart and expansion plans.
The equity raise is complemented by shareholder approval for the second tranche of US$44 million in convertible notes, part of a larger US$70 million package subscribed by Glencore and InfraVia. However, the finalisation of these convertible notes remains contingent on Foreign Investment Review Board (FIRB) approval, introducing a regulatory milestone yet to be cleared.
Operational Progress and Contract Awards
On the ground, Core Lithium is advancing interim open pit mining at the Grants deposit and progressing box cut works at the BP33 underground site. The company is nearing the award of the underground mining contract for BP33, a key component of the Finniss restart strategy. These developments build on earlier milestones, including the surface mining contract awarded for Grants and initial mining activities commenced in recent months, positioning the project for spodumene concentrate production targeted later this year.
Core’s managing director Paul Brown highlighted the company’s strong liquidity position, bolstered by recent sales of concentrate stockpiles and lithium fines, with haulage underway and additional sales options under consideration. This operational momentum, paired with the secured funding, underpins Core’s confidence in disciplined project delivery and milestone execution.
Funding Package and Strategic Partnerships
The equity raising and convertible notes form part of a broader funding package exceeding A$300 million, which includes senior debt facilities and strategic partnerships with industry heavyweights like Glencore and InfraVia. This diversified capital structure supports the Finniss Project’s 20-year mine life outlook and production targets of over 200,000 tonnes per annum of spodumene concentrate.
Core’s funding progress echoes its earlier announcements, including the initial A$120 million raise and the final investment decision to restart Finniss, which were covered in recent filings. The company’s ability to secure substantial institutional support and navigate regulatory approvals will be critical as it moves towards full-scale production.
Bottom Line?
Core Lithium’s equity raise completion and shareholder approvals mark a pivotal funding milestone, but FIRB clearance and contract finalisations remain key upcoming hurdles.
Questions in the middle?
- When will the Foreign Investment Review Board approve the outstanding convertible notes tranche?
- How soon will the underground mining contract for BP33 be awarded and mobilised?
- What impact will further lithium fines sales have on Core’s near-term cash flow?