Core Lithium Ltd (ASX: CXO) shares are on the move on Wednesday morning.
At the time of writing, the ASX lithium stock is up 4% to 26.5 cents.
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Why is this ASX lithium stock rising?
Investors have been bidding Core Lithium shares higher today after it made a big announcement.
According to the release, the company has entered into a binding sale and purchase agreement with Glencore International (LSE: GLEN) for the sale of 25,000 tonnes of lithium fines from the Finniss Lithium Operation.
Management highlights that the transaction represents the second sale from the Finniss lithium fines stockpile, following the announcement in April of an initial 20,000 tonnes sale to Glencore.
It believes the sale represents a further step in Core Lithium's strategy to monetise existing stockpiled material and generate cash flow while mining, processing, and development activities at Finniss progress.
What are the terms?
The ASX lithium stock advised that pricing under the agreement reflects prevailing lithium fines market conditions at the time of sale.
Net proceeds are subject to final grade adjustments and transport costs. However, it has a base price of ~US$270 per tonne (A$375 per tonne) CIF based on indicative Li₂O content. The shipment is expected to occur in June 2026 through Darwin Port.
Management notes that the agreement is otherwise unconditional and subject to customary terms for a transaction of this nature.
What's next?
The company highlights that this second fines sale builds on its February sale of its spodumene concentrate stockpile and the initial fines sale announced in April 2026.
It feels these transactions demonstrate the value of its existing Finniss logistics chain and its strategic partnership with Glencore in providing market access and execution certainty. Management continues to explore pathways for the sale of the remaining ~30kt fines stockpile.
Operations update
More good news is that the company continues to make progress across Finniss with mining underway at the Grants open pit and development at BP33 progressing in parallel.
Pleasingly, development activities continue on schedule with box cut remediation underway and ground support for the portal face location nearing completion in preparation for the portal cut.
Bulk earthworks for the non-process infrastructure (NPI) are progressing, with the pad for the power station complete. In addition, underground decline development remains on track to commence in July.
As a result, the ASX lithium stock believes it is well positioned to progress the development of Finniss as a long-life lithium operation.
Commenting on news, Core Lithium's managing director, Paul Brown, said:
This second sale of lithium fines further strengthens Core's liquidity position as we ramp up operations at Finniss. During 2026 we have generated ~$28.5 million from the sales of lithium stockpiles at Finniss.
This additional liquidity provides Core with greater financial flexibility as we progress mining activities, advance development activities at BP33 and the restart of processing operations. We will continue to assess opportunities to realise further value from the remaining fines stockpile.
