PERTH (miningweekly.com) – ASX-listed Argosy Minerals will raise A$15-million through a share placement to institutional and sophisticated investors to fast-track the development of the Rincon lithium project, in Argentina.

More than 68.1-million shares will be placed at a price of 22c each under the company’s placement capacity.

Argosy on Thursday said that a share purchase plan (SPP) would also be undertaken to raise a further A$2-million, allowing retail shareholders an opportunity to participate in the capital raising.

Under the SPP, existing shareholders would be allowed to subscribe for up to A$15 000 in new shares, with the shares to be priced at 22c each.

The funds raised through the placement and the SPP would be used to fund the Stage 2 development work at Rincon, earning Argosy a 77.5% interest in the project area.

The Stage 2 development work would see production at Rincon expand from the pilot plant scale of between 100 t and 150 t of lithium carbonate, to 1 500 t/y of lithium carbonate.

Argosy pointed out on Thursday that the share placement was being undertaken in place of a proposed placement to China’s Qingdao Qianyung High-tech New Material Company, as part of a broader group of transactions that included offtake for battery grade lithium carbonate product from Rincon.

“We took the opportunity provided by strong institutional and sophisticated investor interest in Argosy to raise development capital on terms substantially better than those under the previously proposed Qianyun placement, and without being subject to complex and time consuming Chinese regulatory approvals,” said Argosy MD Jerko Zuvela.

“At the same time, our acceleration of Stage 2 development at Rincon earlier than previously anticipated has been recognised by our partners, with their in-principle agreement to accelerate the company’s move to 77.5% ownership of the Rincon lithium project.”

First battery grade lithium carbonate product from the Rincon project is now scheduled for the March quarter of next year.