Appendix 3B - Issue of Share Purchase Plan Shares
Adelaide, Nov 3, 2016 AEST (ABN Newswire) - Core Exploration Limited (
ASX:CXO and CXOOA) ("Core" or "Company") advises that it has raised approximately $3.0 million following the successful completion of its oversubscribed share purchase plan ("SPP").
The oversubscribed SPP, together with the recent heavily oversubscribed placement which raised approximately $9 million from professional and Australian and international institutional investors, reflects the significant new interest in Core following its recent high grade lithium discoveries at the Finniss Lithium Project ("Finniss") near the port of Darwin in the Northern Territory.
Core's cash position at 31 October 2016 was approximately $10.0 Million, including funds raised by the SPP and recent placement.
Proceeds from the placement and the SPP will be used to immediately accelerate activities at the Finniss Lithium Project to build on the recent high grade lithium discovered with the first two pegmatites drilled by the Company. The accelerated program is already underway and includes follow-up diamond and RC drilling, as well as phase 2 RC exploration drilling at other high priority pegmatites at Finniss.
High grade lithium drill intersections, including 49m @ 1.78% from 71m Li2O (FRC007), as well as initial observations of diamond core from Finniss, show high grade lithium as spodumene is almost ubiquitous throughout the first fully-cored pegmatite drill intersection.
As a result, Core has immediately commenced preparation for large diameter HQ core to be sent for metallurgical test work to determine the potential to produce commercial grade spodumene concentrate.
Core has also appointed specialist engineering consultants Como Engineers to manage the proposed metallurgical testwork and provide early engineering advice on Finniss. Como Engineers have an excellent track record with previous successful input to both Pilbara Minerals Ltd's Pilgangoora Lithium Project and Galaxy Resources Ltd's Mt Caitlin Lithium Project.
Finniss' close proximity to existing infrastructure and port with spare capacity near Darwin are all key cost advantages that provide strong potential for Core to move product to market quickly should feasibility studies support development.
An Appendix 3B seeking quotation of the shares is in the link below.
Core's Managing Director, Stephen Biggins said:
"We are extremely pleased with the support shown from our existing shareholders in the SPP. With close to $10m cash at bank and an aggressive drilling program currently underway, Core is well placed to capitalise on the huge potential of the Finniss Lithium Project which we believe has the grade, potential scale and infrastructure to be compared with some of the best lithium projects under development in Australia."
To view the release, please visit:
http://abnnewswire.net/lnk/5141Z1WH
About Core Lithium Ltd
Core Lithium Ltd (ASX:CXO) is an emerging lithium producer focused on development of its Finniss Project near Darwin in the Northern Territory. Core owns 100% of Finniss, a major developing project that lies close to existing infrastructure such as the Darwin Port, grid power, gas and rail infrastructure.
The Finniss Project covers a 500km2 tenement holding and 25 historic pegmatite mines. The project area is about 80km from Darwin Port. Exploration work has generated a near term development timeline, with feasibility studies to be completed over the course of 2018 ahead of receipt of approvals in early 2019 and planned first production during 2019.
An aggressive exploration program is under way, which has confirmed the high quality prospectivity across much of the Finniss Project area. Core's stated ambition is to upgrade Finniss' resource base to fast-track commercialisation options.
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