Shares in Core Lithium Ltd (ASX: CXO) are currently in a trading halt.
The freeze follows an announcement outlining a major funding package to restart operations at the company’s Finniss lithium project.
Before the halt, Core Lithium shares last traded at 22 cents. The stock is down about 20% in 2026, though it has gained roughly 13% over the past month.
Here’s what the company announced.
Core Lithium approves Finniss restart
Core Lithium confirmed it has made a Final Investment Decision (FID) to restart mining and processing at its Finniss Lithium Operation.
The restart will be supported by a funding package that includes convertible notes, a senior secured loan, and a large equity raising.
The company said the decision follows completion of an updated restart study for the project.
According to the study, Finniss is expected to generate pre-tax net present value of $1.10 billion and post-tax NPV of $837 million.
The project is forecast to deliver an internal rate of return of 76.5% and a payback period of around 3 years.
Core Lithium also estimates the operation could generate approximately $1.7 billion in cash flow over its life.
Funding package to restart the project
To support the restart, Core Lithium has secured a funding package worth roughly US$170 million plus A$120 million in equity.
The funding structure includes:
⢠US$70 million in convertible notes provided by Glencore and InfraVia
⢠US$50 million senior secured loan facility from Nebari
⢠A$120 million equity placement to institutional investors
The placement will be conducted at 21 cents per share, representing a 4.5% discount to the company’s last closing price of 22 cents.
The equity raising is split into two parts:
⢠$53.3 million unconditional placement
⢠$66.7 million conditional placement, subject to shareholder approval
In total, Core Lithium plans to issue up to 571.4 million new shares under the placement.
Production timeline and project details
The Finniss restart is expected to begin mobilisation during the June quarter of 2026.
Core Lithium said the operation is targeting first spodumene concentrate shipments in the second-half of 2026.
Initial production will come from the Grants open pit, while development continues at the BP33 underground deposit.
The BP33 deposit is expected to deliver first ore around mid-2027, with the operation reaching full production in 2028.
Once fully operational, the Finniss plant is expected to process about 1.2 million tonnes of ore per year and produce roughly 214,000 tonnes of spodumene concentrate each year.
Core Lithium estimates operating costs of around US$533 per tonne, with EBITDA margins of about 48%.
What happens next?
Core Lithium said the trading halt will remain in place until it makes an announcement in relation to the capital raising or until Friday 20 March, whichever occurs first.
Attention now turns to further details once the company releases its next update later this week.
The post Why this ASX lithium stock requested a trading halt today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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.