Argosy Minerals Ltd (ASX:AGY) has outlined a partially-underwritten 1:15 renounceable rights issue to raise up to $6.2 million.
Funds will be used to progress next stage development works at Rincon Lithium Project in Argentina.
The offer shares will be priced at 10 cents and an attaching listed 20-cent option expiring March 2022 will be offered for every 3 new shares issued.
Funds will also put the company in a strong position to finalise a strategic relationship for the enlarged commercial development of the project
READ: Argosy mulls lifting annual rate of planned lithium carbonate plant to 10,000 tonnes
Argosy’s managing director Jerko Zuvela said: “The proceeds of the rights issue will allow the company to build on the excellent progress made in the past year and continue engagement with potential Asian strategic partners for the full commercial development of our Rincon Lithium Project.
“We believe the Rights Issue represents a good outcome for existing shareholders, providing them with the opportunity to participate in this important capital raising on very attractive terms."
Net proceeds of the offer, in conjunction with existing cash reserves, will be used to:
• Progress next stage development and approvals works at the Rincon Lithium Project;
• Payment for completion of recent tenement acquisitions – Mina San Jose & Jujuy (following completion of regulatory procedures); and
• Costs of the offer and working capital.