Equity raising announced
Core Lithium Ltd (ASX:CXO) today announced that it has raised $60 million of equity to develop and de-risk the Finniss Lithium Project. The raising comprises a $50 million institutional placement, and a plan to purchase 10 million shares at a price of $10 million at special price for eligible shareholders in Australia and New Zealand.
This will be placed in two tranches. The Tranche 1 will issue 278.1 million new shares at a capacity of ASX Listing Rule 7.1, which is 29.2 million. Tranche 2 will have a fund raise of $20.8 million through 198.1 million conditional new shares, which the shareholders will approve in early October 2025.
The placement price is 12.5 per cent discounted to the last traded price, which is 0.120 per share and 17.2 per cent discounted to the five-day VWAP, which is 0.127 per share.
Share purchase plan will enable the eligible shareholders to invest up to $30,000 each, and the applications will commence on 4 September and close on 24 September 2025.
Finniss Lithium Project Location Map
Use of proceeds
The company will allocate $25 million to BP33 box cut and decline development. It will spend $5.8 million on long-lead items and $9.2 million on operational readiness. An additional $29.4 million, including assumed full take-up of the SPP, will provide working capital and cover costs of the offer.
Following completion, Core Lithium’s pro-forma cash balance will be $69.4 million, assuming full SPP subscriptions.
Finniss Lithium Project scope
The Finniss Project, located 88km from Darwin Port, remains restart ready. It holds Ore Reserves of 10.7 million tonnes at 1.29 per cent Li₂O and Mineral Resources of 48.5 million tonnes at 1.26 per cent Li₂O.
The Restart Study released in May 2025 outlined average yearly spodumene concentrate production of 205,000 tonnes (SC6). It demonstrated unit operating costs between A$690 to A$785 per tonne FOB, excluding royalties.
The project will operate through underground mining across BP33, Grants, and Carlton. The underground-only method is expected to lower costs. BP33 will deliver a large, sub-vertical pegmatite body producing low mining costs between $63 and $72 per tonne.
Processing upgrades
The existing dense media separation (DMS) plant will undergo optimisation and targeted upgrades. These works will expand throughput capacity by 20 per cent to 1.2 million tonnes annually.
The inclusion of a gravity classifier circuit and upgrades to screens, crusher, and thickeners will simplify operations. The plan will increase global recoveries to 78 per cent and enable dry stacked tailings, reducing capital costs for future expansions.
The existing plant will undergo optimisation and upgrades
Logistics and infrastructure
Core Lithium confirmed the logistics corridor between Finniss and Darwin Port requires no upgrades. The sealed road allows haulage throughout the wet season. The port has sufficient capacity for current operations and expansion.
The company owns 100 per cent of all mining infrastructure, including the plant and underground development assets.
Project economics and capital costs
The Restart Study positioned Finniss as a 20-year life-of-mine asset with potential production upside beyond 205,000 tonnes annually.
Pre-production capital is estimated at A$175 million to A$200 million. This includes Grants underground infrastructure at up to A$50 million, BP33 underground works at up to A$120 million, and plant upgrades of up to A$30 million.
Sustaining capital is forecast at A$20 to A$22 per tonne mined.
Strategic funding
Core Lithium remains debt free and has engaged Morgan Stanley as financial advisor for a strategic funding process. The company is prioritising funding pathways that minimise shareholder dilution while maintaining flexibility.
The company reported strong engagement with high-quality strategic and financial groups since May 2025.
Timeline for investors
Settlement of Tranche 1 placement shares will occur on 3 September 2025, with quotation and trading on 4 September 2025. The shareholder meeting for Tranche 2 approval will take place in early October, followed by allotment, settlement, and trading.
The SPP offer will dispatch documents on 4 September and close on 24 September 2025. The company will announce participation results on 29 September 2025, followed by share allotment.
Management and company outlook
Core Lithium CEO Paul Brown highlighted the purpose of the company’s strategy. He stated the transformation of Core is into a sustainable, low-cost supplier of high-quality spodumene concentrate for decades to come.
The leadership team includes James Bruce as Chief Operating Officer, Anthony Kirke as Project Director, and James Virgo as Chief Financial Officer. The team brings more than 100 years of combined mining and finance experience across lithium and other commodities.
As of 26 August 2025, Core’s market capitalisation was $257 million with A$23.5 million cash and no debt. The company had 2.14 billion shares on issue, which will increase to 2.71 billion shares after the placement and maximum SPP.
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Local and regulatory support
The Northern Territory and Federal Governments remain supportive of the project. Finniss has all significant approvals in place and maintains full compliance with environmental and regulatory requirements.
The restart is projected to create more than 400 direct and indirect jobs in the Northern Territory. The company estimates lifetime royalties to exceed A$400 million.
Key risks acknowledged
Core Lithium emphasised the risks inherent in mining, including cost escalations, market pricing, and project funding. It identified risks of restart delays, lithium recovery variation, regulatory changes, currency fluctuations, and operational hazards.
The company confirmed that the raising is not underwritten and successful completion relies on investor participation.
Conclusion
The capital raising will strengthen Core Lithium’s balance sheet and progress the Finniss restart toward a final investment decision. The combination of long-life resources, cost optimisation, and established infrastructure positions the project for strategic advancement.
