Core Exploration Ltd (ASX:CXO), developer of the Finnis Lithium Project near Darwin, has entered a trading halt ahead of a capital raising.
Management expects to be able to make an announcement regarding the terms of the raising by Monday, April 16.
Funds will assist in progressing Finnis Lithium Project
As an emerging lithium producer, the funds will provide valuable capital to assist in increasing the size of the mineral resource at BP33, part of the Finnis project.
READ: Core Exploration receives impressive lithium assays ahead of resource estimate
Recent drilling results from the project have been outstanding in terms of grade, widths of intersection and proximity to surface.
Managing director Stephen Biggins said: “The results reported are amongst the best spodumene intersections in Australia and greatly increase our confidence that the Finniss project has the potential to become a long-life and high-margin lithium operation."
There has also been evidence that mineralisation increases in grade at depth, suggesting the prospect of further exploration upside.
Deeper drilling could expand resource and mine life
Boding well for future deeper drilling is the fact that the last metre of a recently completed BP33 drill hole delivered assay results of 2.4% lithium.
Pegmatite was intersected from 199 metres downhole and contained high average concentrations of spodumene from 210 metres to the end of hole at 285 metres.