Core Lithium Ltd (ASX:CXO) has successfully completed its recent funding initiatives totalling $11.8 million from a share purchase plan, a share placement and a Lithium Royalty Corporation (LRC) investment.
LRC has now obtained a written confirmation from the Australian Foreign Investment Review Board (FIBR) confirming that the government does not object to LRC’s investment of $8.125 million for a 2.5% royalty over production from the Finniss Lithium Project.
FIRB approval was the remaining condition precedent to the transaction which is now complete.
Core has also confirmed the receipt of $0.35 million from the underwriters of its oversubscribed share purchase plan (SPP).
A total of $3.3 million was raised via the SPP which was oversubscribed by $1.3 million.
Funds raised totalling $11.8 million from the oversubscribed SPP, share placement and LRC royalty transactions are now being used to progress the Finniss Lithium Project towards development.
READ: Core Lithium begins resource expansion drilling at Finniss following $11.4 million capital raise
Core managing director Stephen Biggins said: “Strong support shown by existing and new investors in Core Lithium illustrates the current value and potential upside of the Finniss Lithium Project.
“This capital strengthens our balance sheet and enables the company to invest significantly to further increase profitability and rapid payback of the near development ready, Finniss Lithium Project, which we expect to generate attractive returns for our shareholders.”