PERTH (miningweekly.com) – ASX-listed Xantippe Resources on Monday announced a A$45.9-million capital raise to fund the acquisition of a lithium project in Argentina, as well as exploration programmes and initiating a lithium technology, logistics and supply chain operation.
Xantippe has entered into a non-binding proposal to acquire a 25% interest in mining properties in Argentina, signing a $5-million deal with Minera Collasuyo.
The proposal is conditional on completion and execution of binding documentation, due diligence and other conditions precedent, including all necessary regulatory approvals.
“This proposal to acquire a 25% interest in the Fundos del Plata continues the company’s strategy of becoming a major lithium brine producer in the heart of the prolific Lithium Triangle of South America,” said executive chairperson John Featherby.
“We are delighted to have the opportunity to acquire such a high-quality project alongside such significant global mining companies like Zijin Mining. Subject to acquisition and necessary approvals, we will commence exploration activities as soon as possible. We look forward to keeping shareholders updated on our progress.
“The acquisition of Fundos del Plata IV would add to our strategy of extending our footprint in Latin America and developing a lithium product sourced from brines in South America that will offer a clean product using direct lithium extraction which requires a smaller environmental footprint and uses less water.”
The company on Monday flagged the capital raise, launching a four-for-one renounceable entitlement offer priced at 1c a share.
Based on the company’s undiluted capital on July 21, 45.92-million new shares could be issued under the entitlement offer.
The company earlier this month announced plans to consolidate its issued capital through the conversion of 200 existing shares into 1 share, with a corresponding consolidation of all other securities on issue. The consolidation is expected to occur after the completion of the entitlement offer.
Xantippe told shareholders that the consolidation is being proposed to reduce the number of shares currently on issue which in the view of the board will provide an improved platform for future growth.
The company’s shareholders are expected to meet in September to vote on the consolidation.