Core Exploration Limited (ASX:CXO) is planning to rapidly transition into development mode, following an oversubscribed placement of shares to raise $5 million at 5.3 cents per share.
The company received strong support from professional Australian and international institutional investors, as well as a number of existing shareholders.
Following the completion of the placement, Core will be fully funded to complete the pre-feasibility study (PFS) and feasibility study (FS) for its Finniss Lithium Project near Darwin in the Northern Territory.
Growing mining inventory through nearby discoveries
In parallel with feasibility and other pre-development activities, Core will maintain aggressive multi-rig, exploration and resource drilling programs.
Core managing director Stephen Biggins said: “Core’s Finniss Lithium Project is on a pathway to production, and the support for this capital raising is not only a strong validation for the project, but will allow us to continue to aggressively progress its development as well as maintain our strong commitment to growing our mining inventory through nearby discoveries.
“Core’s exploration and drilling has proved highly successful to date as evidenced by the discovery of several additional prospects that we expect may lead to further resources in time, including BP33, Sandras, Lees, Hang Gong and Carlton prospects.
“All of these new prospects host high grade spodumene mineralisation similar to Grants.”
Last week, the company received an impressive assay result of 75 metres at 1.68% lithium from 210 metres at the BP33 prospect.
This 75-metre mineralised lithium intersection is the widest interval of spodumene pegmatite ever drilled in the Northern Territory.
BP33 is only 5 kilometres from the high-grade Grants deposit, which Core expects to become its first lithium producing asset.
More news flow from Finniss
To ensure retail shareholders are able to participate, the company is raising up to a further $2 million via a share purchase plan for all eligible shareholders at the same issue price as the placement.
Further strong news flow is expected over coming weeks and months, including:
• Imminent resource upgrade at Grants;
• Maiden resource estimate for BP33 in mid Q2 2018;
• PFS for development of Grants deposit in late Q2 2018; and
• Re-commencement of drilling at several priority targets in late Q2 2018.