Argosy Minerals (ASX:AGY) has been inundated with demand from shareholders for its share purchase plan (SPP) which has consequently raised the maximum of $2 million.
The SPP, priced at $0.18, only opened last Friday and was forced to be closed early yesterday, after being heavily oversubscribed.
The funds raised from the SPP and the recently completed $15 million placement will be used to continue Stage 2 development of the Rincon Lithium Project located in Argentina.
READ NOW: Argosy to resume trading after closing $15 million placement for lithium in Argentina
Stage 2 development at Rincon includes pond construction works and drilling operations.
Furthermore, Argosy confirms that the funds raised under the placement and SPP are sufficient to fully fund Rincon to first production of targeted battery grade lithium carbonate equivalent (LCE) product.
This is currently anticipated during the March 2018 quarter.
Argosy Managing Director, Jerko Zuvela, commented
“We undertook the SPP to give existing shareholders the opportunity to buy shares on the same terms as the recent $15 million placement to institutions and sophisticated investors, but we have been quickly inundated and had set a firm limit of $2 million, which led to our decision to close early.
“It’s very exciting to see the breadth of support we have among investors for our pursuit of fast-track development of the Rincon Lithium Project and the additional funds raised, together with the recent $15 million Placement, put Argosy in a strong financial position to progress the Stage 2 development at Rincon to exploit the insatiable demand growth of the battery grade LCE market.”
Background
The Rincon Lithium Project in Argentina is located in the world-class Lithium Triangle, the world’s dominant source of lithium production.
Argosy can earn up to 90% in the project by completing three stages of development milestones.
Stages 1 and 2 development works are currently in progress concurrently.
The aim of Stage 1 is to produce LCE from a pilot plant with up to 500 tonnes per annum capacity, currently on track for completion in the March quarter of 2018.
Stage 2 involves completing development works to expand plant capacity up to between 1,000 and1,500 tonnes per annum LCE.