The Core Lithium Ltd (ASX: CXO) share price took off this morning after the company released news of its Finniss Lithium Project.
The Core Lithium board has made the final investment decision on the Finniss Lithium Project. As a result, the company will move forward with the construction of the project.
The Finniss Lithium Project is located in the Northern Territory.
At the time of writing, the Core Lithium share price is 39.7 cents, 1.79% higher than its previous close. However, the company's stock soared to 41 cents just after the market opened this morning – representing a 5.1% gain.
Let's take a closer look at today's news from Core Lithium.
Image source: Getty Images
Construction to start at the Finniss Project
The Core Lithium share price is gaining on news the Finniss Lithium Project has received the final tick of approval.
Construction of the project will start immediately, with mobilisation and establishment activities to begin in October.
Additionally, Core Lithium has announced it expects the project's maiden production of lithium concentrate to occur in the fourth quarter of 2022.
The project already has approval from the Northern Territory Government. It is also fully funded after a successful capital raise.
The capital raise included a placement that raised $91 million and saw the Core Lithium share price gain 13.8%.
Core Lithium's managing director Stephen Biggs said the project is low-risk, capital efficient, and will produce lithium to be sold at a high margin. Biggs commented:
[The final investment decision] places Core firmly at the front of the line of new global lithium production just at the right time as lithium demand and prices are increasing rapidly.
The Finniss Project has previously been found to house lithium suitable for lithium-ion batteries.
According to the company, it's the only lithium project owned by an ASX-listed entity scheduled to begin production in 2022.
Core Lithium share price snapshot
Today's gains have added to Core Lithium's strong performance on the ASX.
Right now, the company's stock is trading for 129% more than it was at the start of 2021. It has also gained 875% since this time last year.
