Core Lithium Ltd (ASX:CXO) has launched a share purchase plan (SPP) targeting to raise up to $15 million at 31 cents per share as part of a $140 million equity raise to fund the development of the Finniss Lithium Project.
The company is offering eligible shareholders the opportunity to subscribe for up to $30,000 of new fully paid ordinary shares in the company and a minimum of $2,500 of new shares, free of brokerage and commission, under the SPP.
If the total demand exceeds $15 million, then the company reserves the right to close the SPP early and/or scale back applications or to increase the amount raised.
Use of funds
The funds raised will be used for:
➢ development and construction of the Finniss Lithium Project;
➢ exploration and resource drilling on high priority pegmatite targets and lithium projects; and
➢ working capital.
Availability exclusive to shareholders
The right to participate in the offer under the SPP is optional with availability exclusive to shareholders who are registered as holders of fully paid ordinary shares in the capital of the company at 7:00 pm (AEST) on 6 August 2021 and whose address is recorded in the company’s register of members as being in Australia or New Zealand.
New shares under the SPP will be issued at 31 cents each, which is at a 2.4% discount to the volume-weighted average market price of shares calculated over the last five days.
Notably, the SPP issue price per new share is less than the highest market price 36 cents per share in the 30 days before the announcement of the plan.
- Ephrems Joseph