The Core Lithium Ltd (ASX: CXO) share price won't be going anywhere on Monday after the company requested a trading halt.
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What's the trading halt for?
The trading halt was requested on the basis of a pending capital raising announcement.
The company advised its shares will remain halted until Wednesday, 11 August or until the announcement is released to the market.
The pending capital raising comes right after the Core Lithium share price surged 14.29% last Friday to a 7-month high of 36 cents.
June quarterly activities report
According to the company's activities report, Core Lithium had a cash and cash equivalents position of $38.18 million at the end of the June quarter.
During this period, the company delivered a number of milestones including the completion of its definitive feasibility study (DFS) for its Finniss lithium project. The study was a finalised extension scoping investigation outlining long-term lithium production plans for Finniss and secured a port operating agreement at Darwin Port.
Core Lithium has branded itself "Australia's most advanced new lithium project on the ASX" and "at the front line of new global lithium production".
The company is targeting construction to begin in 2H 2021 with production to commence as soon as 2H 2022.
Definitive Feasibility Study
Core Lithium believes its DFS demonstrates the Finniss Project's economics as "compelling, with low capital costs and competitive operating costs that result in strong operating margins and rapid payback".
The DFS highlights an average annual production of 175,000 lithium spodumene per annum with a mine life of 8 years and a payback period of 2 years.
The company is currently undergoing a stage 1 extension scoping study to increase production and add a further 2 years to mine life.
Looking ahead, the company recently announced exploration targets with the "potential to significantly add mineral resource tonnes and support further extensions and potential stage 2 expansion of Finniss".
