Core Exploration Ltd (ASX:CXO) has received firm commitments from investors to place 52 million new shares at an issue price of $0.042 per share to raise $2.2 million.
The funds raised will be used to accelerate the lithium evaluation at Core’s Northern Territory tenements.
The placement was substantially oversubscribed, with strong support received from professional and institutional investors in Australia and offshore.
The company is initially focusing its attention on the Finniss Lithium Project in the Bynoe Pegmatite Field, and the Anningie Lithium Project in the North Arunta Pegmatite Province.
The new funds will be used for fieldwork across both the projects with the objective of selecting pegmatite drill targets for the maiden drill program scheduled to commence in Q3 2016.
Core recently commenced fieldwork for the evaluation and geochemical sampling of numerous historic mine workings in the lithium prospective pegmatite fields of the Northern Territory.
Core’s portfolio in the Northern Territory covers more than 25 historic tin-tantalum mines considered highly prospective for lithium mineralisation, including the Mount Finniss Tin-Tantalum Mine.
The Mount Finniss Tin-Tantalum Mine is the largest historically producing tin-tantalum mine in the Northern Territory.
Core’s evaluation and exploration work represent the first systematic assessment of these historic mines and surrounding tenements for lithium, given all of the historical work was primarily focused on tin‐tantalum.
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