Argosy secures funds for lithium project

Perth-based Argosy Minerals has raised $30 million from investors to begin construction of its Rincon lithium project in Argentina.

The project, located in the Salta Province, is a joint venture between Argosy and local family owned business Puna Mining. Argosy holds a 77.5 per cent project interest, with the right to move to 90 per cent ownership upon funding stage three development works.

Argosy said it was now fully funded to begin construction of a 2,000 tonnes per annum plant at Rincon, expected to take around 12 months followed by a four-month commissioning period.

The funds raised will also go towards a 10,000tpa operation feasibility, as well as exploration at Argosy’s other lithium project, Tonopah, in the US, which it wholly owns.

“This provides a clear mandate and pathway for continued commercial scale development, as we become only the second ASX-listed battery quality lithium carbonate producer,” managing director Jerko Zuvela said.

“This places the company in an enviable position to generate cash flow and be in a much stronger position to advance strategic arrangements whilst developing the 10,000tpa operation.”

Argosy will issue about 230.8 million shares priced at 13 cents each, with the placement managed by Bell Potter Securities.

Shares in Argosy closed up 6.3 per cent to trade at 17 cents.