【SMM Analysis】Australian miner Core Lithium launches A$60 million equity financing to accelerate restart of Finniss lithium project

Australian lithium developer Core Lithium Ltd has announced an equity financing plan to raise A$60 million (approximately US$40.2 million) to advance the restart of its Finniss lithium project in the Northern Territory and reduce project risks. The financing consists of A$50 million from an institutional placement and A$10 million from a share purchase plan (SPP). The placement price was set at A$0.12 per share, representing a 12.5% discount to the last traded price and a 17.2% discount to the 5-day volume-weighted average price.

The funds will be allocated as follows:

• A$25 million for box cut and decline development at the BP33 orebody

• A$5.8 million for long-lead equipment procurement

• A$9.2 million for operational readiness expenses

• The remaining A$29.4 million (including full SPP subscription) will serve as working capital

According to the project restart strategy, the Finniss lithium project holds 10.7 million tonnes of ore reserves (averaging 1.29% Li₂O) and 48.5 million tonnes of mineral resources (averaging 1.26% grade). A restart study released in May 2025 indicates that the project can achieve an annual production capacity of 205,000 tonnes of spodumene concentrate (SC6), with FOB operating costs estimated at A$690-785 per tonne. The operation will adopt a purely underground mining method across three orebodies—BP33, Grants, and Carlton—with BP33’s mining cost projected at just A$63-72 per tonne.

The company estimates pre-production capital expenditure at A$175-200 million, covering:

• BP33 underground development: A$120 million

• Processing plant upgrades: A$30 million

• Grants underground infrastructure: A$50 million

• Sustaining capital expenditure: A$20-22 per tonne

Core Lithium currently maintains a debt-free position and has appointed Morgan Stanley as its strategic financing advisor. CEO Paul Brown stated, "This financing will accelerate Core’s transformation into a sustainable, low-cost spodumene concentrate supplier, providing high-quality raw materials for the lithium battery industry for decades to come."

As of the end of August 2025, the company’s market capitalization stood at A$257 million, with cash reserves of A$23.5 million. Upon completion of the financing, its cash balance is expected to increase to A$69.4 million, while total shares outstanding will expand from 2.14 billion to 2.71 billion.