Core Lithium Ltd (ASX:CXO) (OTCMKTS:CORX) is well-positioned to be Australia’s next lithium producer, developing the Finniss Lithium Project which is one of Australia’s most capital efficient and lowest cost hard rock spodumene lithium projects near Darwin Port in the Northern Territory, Australia.
In the half-year to December 31, 2020, Core continued to build strategic relationships with potential offtake partners and project financiers while investing in exploration and project development activities.
During the period, the company began a lithium resource infill and expansion program to further define and grow mineral resources and project mine life with the aim of releasing an updated and optimised definitive feasibility study in the second quarter of 2021.
Milestones reached
Discussions and negotiations with the Northern Territory Government resulted in the signing of a non-binding indicative term sheet with the Local Jobs Fund for a $5 million concessional Finance Facility to contribute to the lower start-up capital funding needs.
In January 2021, Core received and accepted the NT Government’s offer of a mineral lease (ML 32346) for the BP33 deposit for a term of 25 years while in February, it raised $40.5 million in additional capital through the placement of 162 million shares to new high-quality institutional investors.
Recently, through its wholly-owned subsidiary Bynoe Lithium Pty Ltd the company entered into a call option with Outback Metals Proprietary Limited and Victory Polymetallic Pty Limited to potentially acquire six granted mining leases.
These leases contain more than 30 lithium pegmatite targets and have a history of tin and tantalum mining with similar chemistry as the high-grade spodumene pegmatites on Core’s adjacent Finniss Lithium Project tenements.
Bynoe has until December 31, 2021, to exercise its call option and may extend that date by three months until March 31, 2022, and a further three months until June 30, 2022, subject to paying $250,000 to the grantors for each extension.
Aiming to increase resource
Core’s aim is to complete the acquisition of these assets in 2021 and, based on a positive assessment, to increase mineral resources and potentially increase Finniss project life-of-mine.
This plan would also support future lithium production capacity increases and downstream processing.
Core Lithium managing director Stephen Biggins said it was a significant milestone in the company’s history.
“This new acquisition of multiple pegmatite mines adjacent to the Finniss Lithium Project has the potential to significantly accelerate Core’s resource expansion plans.
“The expected increases in resources from this deal and our well-funded resource drill programs at Finniss this year should provide a strong platform for extending and expanding production of lithium from the project as lithium prices increase.”