The company confirms that the $15 million placement, less costs, will be used to continue Stage 2 development at the Rincon Lithium Project in Argentina, including pond construction works and drilling operations.
Argosy added that funds raised under the placement are sufficient to fully fund the company's proposed operations at Rincon to first production of targeted battery grade LCE product, which is currently anticipated during the March quarter 2018.
Jerko Zuvela, managing director, commented:
"The development capital secures the continued progress of Stage 2 development works at the Rincon Lithium Project as we advance toward our intended objective of near-term battery grade lithium carbonate production.
"We confirmed strong institutional and sophisticated investor interest on terms substantially better than those under the previously proposed Qianyun placement ensuring less dilution and maximum optionality for shareholders.
"I’m very pleased with this outcome and we carry on business as usual – for fast-tracked development of Rincon to exploit the insatiable demand growth of the battery grade LCE market."
Share purchase plan
Argosy will also undertake a Share Purchase Plan (SPP) capped at raising $2 million.
The SPP will be at the same price as the placement.
The spot lithium carbonate price has increased by more than 50% year to date, with the bulk of that rise happening over the last three months.
Argosy noted that analyst commentary and feedback through direct discussions with customers indicates an increasingly tight lithium market.
The company continues to be in active engagement with several industry leading participants in the lithium-ion battery sector to advance the marketing of its targeted battery grade LCE production.