Shares of Core Lithium Ltd (ASX: CXO) are gaining steam in afternoon trade on Wednesday following the release of its quarterly activities and cash flow update.
At the time of writing, the Core Lithium share price is trading 1% higher at $1.35 after ratcheting up from a low of $1.27 at the open of trade.
The S&P/ASX 300 Metals & Mining Index (ASX: XMM) is also tracking higher today after a shaky start and is now 63 basis points higher. Whilst it's quite difficult to establish a causal relationship between moves in the index and the Core Lithium share price, it is leading the broader sector at the time of writing.
Core Lithium advances on Finnis project
Key highlights for the quarter ended 31 March 2022 include:
- Core Lithium reached a landmark binding Term Sheet with US electric vehicle maker Tesla
- Also advanced construction activities at the Finniss Project
- Completed the acquisition of highly prospective Mineral Leases adjacent to Finniss
- Reported significant drill results at BP33 and Carlton deposits
- Announced the resignation of managing director, Stephen Biggins
- Joined the ASX 300 Index
What else happened for Core Lithium last period?
Core Lithium advised that construction and mining activities commenced at the Finnis site in late 2021. During the period, it instilled a 7km water pipeline whilst starting works on draining control and sediment control infrastructure.
"Development of the Finniss Lithium Project continues to run according to schedule with site activities during the current quarter to focus on the pre-strip needed to uncover ore by about mid-year and the erection of the DMS plant," the company remarked.
Core Lithium also came to an accord with US electric vehicle maker Tesla for the supply of up to 110,000 tonnes of lithium spodumene concentrate from its Finnis project over a term of 4 years.
Pricing will be referenced to the market price of spodumene concentrate under the agreement, with ceiling and floor caps in place.
It doesn't end there with Tesla either. In addition to the commitment, Tesla has agreed to potentially "assist with the assessment and possible development of Core's Stage 3 expansion", subject to conditions.
Core Lithium also reported positive results and assays from drilling at its BP33 and Carton deposits, both of which were completed during the 2021 season.
The company also joined the ASX 300 index during the period as well after its market capitalisation saw extensive gains.
What's next for Core Lithium?
Works at the Finnis project are continuing full steam ahead with earthworks currently on schedule, Core Lithium says.
"[T]he establishment of access roads and water pipelines, while water management infrastructure, administration areas and communication facilities are well advanced," it notes.
Upon pad completion, construction of the dense media separation (DMS) plant will start, due for April 2022.
"[That] will pave the way for Primero Group to commence plant construction activities," Core Lithium noted.
Core Lithium also completed the acquisition of tenements forming the Shoebridge Project for $250,000 plus a royalty of 2%. The company has the option to buy back the royalty for $10 million.
Core Lithium share price snapshot
In the last 12 months, the Core Lithium share price has soared by more than 428% and is now up 133% this year to date.
During the previous month of trade, shares have curled up by another 13%.
