Core Lithium Share Price Iced

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Australia’s next lithium producer, Core Lithium Ltd (ASX: CXO), requested last September 30 for a trading halt. 

Stock prices were frozen at $1.105 each. The deadlock was requested due to the company’s strategy and announcing their launch of its $100 million capital raise, which was expected to last until October 4.

CXO will take up the $100 million placement, which will aid in speeding up the growth of the newest and most advanced Finniss lithium project set up in the Northern territory. The plan includes accelerating resource definition, extensional and explorative drilling, and speeding up the development of the BP33 underground mine. The company will also look into creating a night shift to enhance its project management and corporate development capabilities.

CEO Gareth Manderson notes that the placement will allow the company to grow in new ways. 

“We will be well-funded for a more extensive exploration campaign on our prospective landholding. Recent exploration success at BP33, Core’s proposed second lithium mine, supports the deployment of growth capital and project development, enabling Core to capitalise on the current strength in lithium prices.

We look forward to delivering the first lithium concentrate production from Finniss in the first half of 2023.” Manderson further details.

The placement also would provide around 97.1 million shares for the company, and the share price is expected to be approximately $1.03. This represents a 6.8% discount compared to the closing share prices of $1.105 and a 13% discount from the five-day weighted average price of $1.184.

CXO announced that the placement was successfully concluded on October 3. The company also announced that it had completed its first sale of a spodumene DSO product (1.4% Li2O) from its Finniss Project.

“The completion of the spodumene DSO tender is an excellent result for Core and indicates the strong demand for lithium,” Gareth announces. The company identified that the demand for spodumene DSO material was vital. Capitalising on this, CXO commanded a sale price of US$951/DMT.

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