Core Lithium share price lower despite big news

The Core Lithium Ltd (ASX: CXO) share price is falling on Monday despite the release of a positive announcement.

In early trade, the lithium miner’s shares are down slightly to $1.14.

What’s going on with the Core Lithium share price?

The Core Lithium share price has dropped today after broad market weakness offset the release of an announcement on the Finniss Lithium Project near Darwin.

According to the release, Core Lithium has awarded a five-year operations and maintenance (O&M) contract for the Dense Media Separation (DMS) plant at the Finniss Lithium Project.

This contract has been awarded to Primero, which is a wholly owned subsidiary of NRW Holdings Limited (ASX: NWH).

The release notes that the scope of the O&M contract not only includes the DMS processing facilities, but also related Tailing Storage Facilities (TSF) infrastructure at the project. Management estimates that the contract has a value of $60 million over the five years.

What’s next for Core Lithium?

This is a key contract award and brings the commencement of production a huge step forward.

And the good news is that Primero has the majority of key personnel on hand for deployment into the contract commencing from this month. It expects to complete all remaining recruitment and operational readiness activities by December, ready for first spodumene concentrate production in the new year.

Core Lithium’s CEO, Gareth Manderson, was pleased with this latest development. He said:

The O & M contract award to Primero extends the relationship Core has with Primero from beyond the Engineering, Procurement & Construction (EPC) contract. Significantly Primero are not only building the projects DMS facility, they now back their workmanship through the O & M.

The post Core Lithium share price lower despite big news appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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