Argosy Minerals Ltd. launched a rights offering to raise up to approximately A$6.2 million.
The company said eligible shareholders on record as of March 13 will be offered 1 new share for every 15 shares held at 10 cents apiece. For every 3 new shares, a listed option will be offered, which is exercisable at 20 cents apiece until March 31, 2022.
The issue price represents a 23% discount to the company's 10-day volume weighted average share price of 13 cents apiece, according to Argosy.
Proceeds will be used to advance the Rincon lithium project in Argentina and settle payments for acquiring the Mina San Jose and Jujuy tenements, as well as for working capital.
The company said eligible shareholders will be given the opportunity to apply for additional securities in excess of their entitlement.
The rights issue was partially underwritten by CPS Securities Pty. Ltd. to A$3 million, according to a March 8 release.
The offering expires March 28.