Tranche 1 of the placement (A$1 million at 6 cents per share) was completed immediately, while the second A$1 million tranche (also at 6 cents per share) remains subject to Chinese regulatory approval. Both tranche 2 of the placement and the Framework Agreement were subject to a sunset date of 31 October 2017.
In order to give Core and Yahua additional time to finalise documentation and secure relevant approvals, the parties have agreed to a short time extension of the sunset date to 30 November 2017.
Yahua and Core have agreed to negotiate in good faith to establish binding co-operation and offtake agreements, which will provide for Yahua to acquire DSO lithium production from Core's exploration licence EL 29698 which is part of the Finniss Lithium Project.
The Company remains focused on progressing the high grade Grants lithium deposit (one deposit within contained within the broader Finniss Lithium Project) into production as soon as possible, through the establishment of a DSO operation. In this regard, the Company has recently applied for a Mineral Lease over the Grants deposit (refer ASX announcement dated 19 October 2017).
About Sichuan Yahua Industrial Group Co. Ltd
Sichuan Yahua Industrial Group Co. Ltd. One of China's leading lithium producers and is an Ashare listed company on the Shenzhen-stock exchange in China, with a market capitalisation of over RMB 13 billion (A$2.2 billion).
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About Core Exploration Ltd
Core Exploration Ltd (ASX:CXO) is an emerging lithium producer focused on development of its Finniss Project near Darwin in the Northern Territory. Core owns 100% of Finniss, a major developing project that lies close to existing infrastructure such as the Darwin Port, grid power, gas and rail infrastructure.
The Finniss Project covers a 500km2 tenement holding and 25 historic pegmatite mines. The project area is about 80km from Darwin Port. Exploration work has generated a near term development timeline, with feasibility studies to be completed over the course of 2018 ahead of receipt of approvals in early 2019 and planned first production during 2019.
An aggressive exploration program is under way, which has confirmed the high quality prospectivity across much of the Finniss Project area. Core's stated ambition is to upgrade Finniss' resource base to fast-track commercialisation options.
Core Exploration Ltd