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CORE LITHIUM LTD — Capital/Financing Update 2016
Feb 17, 2016
64737_rns_2016-02-17_12841dac-9afc-4515-bda8-fb44963b8847.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
ASX : CXO
18[th] February 2016
Oversubscribed Placement to Fund Advancement of Lithium Projects
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Placement strongly over-subscribed to raise approximately $950,000
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Funding secured will allow Core to advance exploration programmes on its recently acquired lithium projects in the Bynoe pegmatite field in the Northern Territory
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Initial exploration work planned to commence at the Finniss Lithium Project, host to the NT’s largest historical producing tin-tantalum mine.
Core Exploration Limited ( Core or the Company ) (ASX:CXO and CXOOA) is pleased to announce it has received firm commitments from sophisticated, professional and institutional investors to place approximately 43.5 million new shares at an issue price of A$0.022 per share to raise approximately $950,000 (before costs) ( Placement ). Each share comes with an attaching quoted Option (CXOOA) exercisable at 5 cents each by 31 August 2017.
The Placement, which was led by Hartleys Limited, closed substantially oversubscribed, receiving strong support from a number of stockbroking firms around Australia.
The capital raised through this placement puts Core in a strong position to undertake a substantial amount of exploration work across its portfolio of lithium projects in the Bynoe and Arunta provinces of the Northern Territory, and also provides the financial capacity to act upon and execute additional complementary lithium project opportunities being assessed by the Company in the NT where the Company has developed expertise and experience through its exploration activities in recent years.
Commenting on the Placement Core’s Managing Director, Mr Stephen Biggins said:
“We are delighted with the strong support from sophisticated, professional and institutional investors for the capital raising, and we welcome a number of new high quality investors onto Core’s register. We look forward to commencing exploration activities on our highly prospective lithium projects in the weeks ahead”.
Core’s initial exploration efforts will be focused on the Finniss Lithium Project, located in the highly prospective Bynoe pegmatite field south of Darwin in the NT. The Bynoe tintantalum-lithium field is one of the most prospective areas for lithium in the NT and has
A 26 Gray Court, Adelaide SA 5000 | T (08) 7324 2987 | E [email protected]
many similarities to the Greenbushes mine in WA, one of the world’s largest spodumene deposits.
The historic Mt Finniss Mine within Core’s area of tenure is listed by the Northern Territory Geological Survey as the largest overall single producer of tin and tantalum in the Northern Territory. The strong endowment of tin and tantalum in pegmatites at the Mount Finniss Mine and in the surrounding area suggest high potential for lithium grades.
Core is focused on discovering and developing high grade lithium deposits, and to this end, is reviewing and prioritising the prospectivity of a number of lithium rich pegmatite provinces in the Northern Territory.
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Figure 1: Mt Finniss Mine, Finniss Lithium Project tenure and other tin and tantalum workings and pegmatite geology in the Bynoe region, NT.
A 26 Gray Court, Adelaide SA 5000 | T (08) 7324 2987 | E [email protected]
The Placement was made to sophisticated, professional and institutional investors under the Company’s 15% placement capacity under Listing Rule 7.1 and 10% placement capacity under Listing Rule 7.1A.
The issue of the attaching options to the Placement will be subject to shareholder approval, and a Notice of Meeting will be provided to shareholders in the near term for this shareholder meeting.
For further information please contact: Stephen Biggins Managing Director Core Exploration Ltd T:+61 8 7324 2987 [email protected]
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute’s codes and recommended practices. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Biggins consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The report includes results that have previously been released under JORC 2012 by Core on 08/02/2016 “New Lithium Project includes largest tin tantalum mine in NT”. The Company is not aware of any new information that materially affects the information included in this announcement.
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