Argosy Minerals Limited (ASX:AGY) has raised more than $9.16 million in a well-supported, oversubscribed renounceable rights offer which closed on March 28, 2019, with funds to be used to progress development of the Rincon Lithium Project in Argentina.
These funds were raised from the entitlement offer, shortfall shares and oversubscriptions.
The company has received binding commitments to raise $9,160,558 and will issue more than 91.605 million new shares and 30.535 million new options.
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Argosy managing director Jerko Zuvela said: “We undertook the rights issue to give all shareholders the opportunity to participate in this capital raising initiative and we have welcomed the response to which we are extremely appreciative.
“It’s very exciting to see the breadth of support we have amongst investors in our pursuit to develop our Rincon Lithium Project.
“This puts Argosy in a strong financial position to progress the commercial development of Rincon and with some recent milestones being completed, we will progress toward realising further upcoming milestones and our ultimate aim of moving to full-scale operations.”
The company received applications from shareholders under the rights issue to subscribe for almost 42 million new shares representing 68.2% of all shares offered.
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Eligible shareholders who applied for their full entitlement under the rights issue were also able to apply for new shares in excess of their entitlement through a shortfall offer.
Under the terms of the offer, and due to overwhelming interest, directors have resolved to meet investor demand and issue the maximum shortfall facility of more than 19.587 million ordinary shares.
Argosy directors have also agreed to issue a portion of oversubscriptions totalling commitments of about $3 million with additional funds spent on working capital in accordance with the company’s existing project development strategy.
CPS Securities Pty Ltd acted as lead manager and the partial underwriter.