Argonaut Resources NL (ASX:ARE) will open a one for two non-renounceable entitlement offer of new ordinary shares at an issue price of $0.001 per new share to raise up to $1.8 million on Monday, August 29, 2022, at 7:00 pm AEST.
The company intends to use the proceeds to fund exploration of lithium-prospective pegmatites at the Higginsville project in Western Australia and expenses related to the recovery of the Lumwana West exploration licence in Zambia, as well as general working capital and costs associated with the entitlement offer.
Higginsville lithium exploration
Argonaut will use the funds generated in the entitlement offer to target a swarm of lithium-caesium-tantalum pegmatite dykes – the prospectivity of which has been confirmed by caesium and rubidium assays.
ARE’s initial mapping at Higginsville has identified five pegmatites up to 50 metres in thickness located at the margin of the Pioneer Granite – a prime geological setting for lithium within four kilometres of the Dome North lithium pegmatite deposits and 12 kilometres of the Sinclair Caesium Mine.
The company intends to:
- commence fieldwork at Higginsville on September 26, 2022;
- complete soil sampling, rock chip sampling and mapping to define possible extensions to the known pegmatites plus potential new pegmatites;
- seek approvals for a reverse circulation (RC) drilling campaign targeting lithium; and
- proceed to drill the lithium targets following confirmation of sampling results and receipt of statutory approvals.
Lumwana West licence recovery
Argonaut says it is working with the relevant Zambian authorities to reinstate its ownership of exploration licence 22399-HQ-LEL, Lumwana West.
The company has assisted with investigations into the shortcomings and illegalities within the governmental processes that led to the ostensible licence cancellation following advice from the Minister for Mines and Mineral Development, the Hon Paul Kabuswe MP.
ARE has also made representation to the relevant parties on the extent and quality of exploration and feasibility work completed on the project to date, as well as the company’s investment track record in Zambia.
Zambia’s president, Hakainde Hichilema, committed his government to fighting corruption as recently as August 12, 2022.
The company believes its objective of completing a feasibility study assessing a two-phase copper/cobalt mine and processing facility at Lumwana West compliments the Zambian government’s stated objective of greatly increasing copper production.
Murdie copper exploration
Argonaut has partnered with mineral exploration artificial intelligence (AI) and machine learning company SenseOre Ltd to generate copper-gold targets at ARE’s Murdie Project using the company’s proprietary AI and machine learning technology.
Initial mapping by SenseOre has revealed a major new copper-gold target still under consideration by the Argonaut team, while ARE continues to engage with potential contractors to further drilling at the tenure.
Argonaut is also awaiting judgement from a review into drilling approvals received under the Aboriginal Heritage Act 1988 (AHA) and provided by the South Australian government.
On March 16, 2021, the Barngarla Determination Aboriginal Corporation filed an application in the South Australian Supreme Court for the review, challenging the authorisation.
The review was heard in July 2021.