PERTH (miningweekly.com) – ASX-listed Argosy Minerals will raise A$30-million through an oversubscribed share placement to fund lithium production at its Rincon project, in Argentina.
The placement will consist of more than 230.7-million new shares, to be issued at a price of 13c a share is to institutional, sophisticated and professional investors, under the company’s existing placement capacity.
The shares would be issued with one attaching unlisted option for every two new shares subscribed for, with an exercise price of 25c each and an 18-month expiry.
“We received a significant endorsement of our business with this placement, and are now fully funded to achieve 2 000 t/y scale production at our Rincon lithium project,” said Argosy MD Jerko Zuvela.
“This provides a clear mandate and pathway for continued commercial scale development, as we become only the second ASX-listed battery quality lithium carbonate producer.
“This places the company in an enviable position to generate cashflow and be in a much stronger position to advance strategic arrangements while developing the 10 000 t/y operation.”
The proceeds from the placement fully fund Argosy for the construction and production of battery quality lithium carbonate product from a 2 000 t/y modular scale operation at Rincon.
The planned schedule of operational works for this processing plant is estimated for a 12-month construction timeframe, with a 4-month commissioning period thereafter.
Proceeds from the capital raise will also go towards feasibility and development works to expand the Rincon project towards the 10 000 t/y scale, as well as exploration work at the Tonopah lithium project, in Nevada.
Argosy would also use the funds to consider strategic opportunities and acquisitions to expand its clean technology-focused project portfolio, and for general working capital.