Core Lithium Raises $54.3M, Increases Ore Reserves to 15.2Mt at 1.26% Li2O
Core Lithium has significantly increased its Ore Reserves at the Finniss Lithium Project by 42%, secured $54.3 million in fresh capital, and cleared all offtake obligations to advance its restart plans.
- 42% increase in Ore Reserves at Finniss following Carlton deposit update
- Raised $50 million via two-tranche Placement plus $4.3 million through Share Purchase Plan
- Termination of final offtake agreement frees 100% of future spodumene production
- Cash balance strengthened to $35.9 million at quarter end
- Technical workstreams progressing on schedule towards Final Investment Decision
Significant Reserve Upgrade
Core Lithium Ltd (ASX, CXO) has reported a substantial 42% uplift in Ore Reserves at its flagship Finniss Lithium Project, driven by the inclusion of the Carlton deposit. This update boosts the total Ore Reserves to 15.2 million tonnes at an average grade of 1.26% lithium oxide, underpinning a robust 20-year mine life. The Carlton deposit alone contributes significantly to this increase, with 81% of its measured and indicated resources now converted to Ore Reserves.
Capital Raising to Accelerate Development
To support the project’s advancement towards restart, Core successfully raised $50 million through a two-tranche Placement at $0.105 per share, complemented by an additional $4.3 million via a Share Purchase Plan. The capital raising attracted strong interest from institutional investors, including cornerstone backers like Fourth Sail Capital LP. This fresh funding bolsters Core’s balance sheet, increasing cash on hand to $35.9 million by the end of September, before the second tranche settlement.
Strategic Flexibility with Offtake Termination
In a strategic move to enhance marketing flexibility, Core terminated its final offtake agreement with Ganfeng Lithium Co., removing all legacy spodumene concentrate sales obligations. This leaves 100% of future production unencumbered, allowing Core to pursue spot sales or new partnerships freely. The termination involved a one-off payment of US$2 million but is expected to provide greater optionality in the ongoing strategic funding process.
Operational and Technical Progress
Core continues to advance key technical workstreams including geotechnical studies, water management, mine design, and operational sequencing. These efforts are on track to support a Final Investment Decision (FID) and further de-risk the restart plan. Meanwhile, care-and-maintenance activities at Finniss have been conducted without any environmental or safety incidents, reflecting the company’s commitment to sustainable operations.
Exploration and Future Potential
Beyond the Ore Reserve upgrade, Core has defined an Exploration Target of 1.2 to 1.8 million tonnes at 1.2–1.4% lithium oxide beneath the Carlton deposit, with plans for underground drilling contingent on mining commencement. Additionally, exploration at the Blackbeard and Shoobridge Gold projects continues, with the latter offering a strategic opportunity amid strong gold prices.
Bottom Line?
With reserves expanded, funding secured, and offtake constraints removed, Core Lithium is poised for a decisive move towards restarting Finniss.
Questions in the middle?
- How will Core leverage the unencumbered spodumene production in volatile lithium markets?
- What timeline is expected for the Final Investment Decision and commencement of underground drilling?
- How might the recent capital raise influence Core’s strategic partnerships and funding options?
