The SPP complemented the company’s recent placement to sophisticated and institutional investors to raise A$91 million and the recent Ganfeng equity investment of A$34 million, taking total proceeds to A$150 million.
Last month, the company launched an SPP targeting to raise to A$15 million at 31 cents per share as part of the equity raise to fund the development of the Finniss Lithium Project.
The SPP offered eligible shareholders the opportunity to subscribe for up to A$30,000 of new fully paid ordinary shares in the company and a minimum of A$2,500 of new shares, free of brokerage and commission.
The company received total applications for more than $43 million, almost three times its target of A$15 million.
Keeping the significant demand for the SPP in mind, Core decided to increase the amount raised to A$25 million.
SPP applications will all be scaled back under the terms of the SPP offer document.
Use of proceeds
Core Lithium plans to use the proceeds from the SPP and placement for developing and constructing the Finniss Lithium Project.
The availability of additional amounts from the oversubscribed SPP will help the company to accelerate the assessment of acquisition and exploration opportunities.
Funds will also help in expanding resource drilling on high priority pegmatite targets and lithium projects and for working capital.
As a part of the fundraising initiative, Core will issue approximately 81 million new fully paid ordinary shares, which will be ranked equally with existing shares.
The new shares will be issued at A$0.31 each, which is the same price offered in the placement and are expected to be allotted on September 9, 2021.
The Core Lithium board thanks shareholders for their ongoing support and endorsement of the company’s business model as it moves towards a final investment decision on the Finniss Lithium Project.