Core Lithium

A$140m equity raising, including A$34m strategic investment by Ganfeng Lithium

August 2021

On 11 August 2021 Core Lithium Ltd (“Core”) announced a fully underwritten placement of A$91 million and a non-underwritten Share Purchase Plan (“SPP”) to raise up to a further A$15 million. In addition, Core announced it had secured a strategic equity investment of A$34 million from, and binding offtake with, Jiangxi Ganfeng Lithium Co., Ltd. (“Ganfeng”). Together, a total of A$140 million in new equity was raised by Core to fully fund the development of Stage 1 of Core’s Finniss Lithium Project (the “Project”) located in the Northern Territory.

The Placement and SPP were priced at A$0.31 per share, representing a 1% premium to Core’s 10-day VWAP, and the Ganfeng equity investment was priced at A$0.338 per share, representing a 10% premium to 10-day VWAP. The offtake is for the supply and delivery of 300,000 dry metric tonnes of spodumene concentrate from the Project over 4 years. Ganfeng is one of the largest producers of lithium in the world, with investments in high-quality lithium mineral resources across Australia, Argentina, Mexico and China.

Azure acted as financial adviser to Core on the equity raising, including providing valuation, structuring and strategic advice, assisting with negotiation of the Ganfeng agreements, assisting with preparation of Core’s disclosure materials, and assisting with appointment of the joint lead managers and underwriters of the placement, Canaccord and Bank of America.