The Argosy Minerals (ASX: AGY) share price has rocketed more than 6% today after the company announced a $30 million placement.
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The Argosy Minerals Limited (ASX: AGY) share price fired up more than 7.5% to 17 cents at the time of writing, after reaching a 19 cent high in opening trade this morning.
Argosy Minerals is a mining and exploration company with a 77.5% (and ultimate 90%) interest in the Rincon Lithium Project in Salta Province, Argentina. The company also has a 100% interest in the Tonopah Lithium Project in Nevada, USA.
Argosy share price gains after $30 million pump
Today, the company advised that it has received firm commitments for a $30 million placement to institutional, sophisticated and professional investors.
The capital raised will fully fund the production of battery quality lithium carbonate product from the Rincon site and contribute to on-going cash flow generation.
Argosy estimates that the Rincon site is presently a 2,000 tonnes-per-annum (tpa) operation. The construction timeframe is approximately 12 months with an estimated 4-month commissioning period after.
The company also plans to conduct feasibility and development works at the Rincon site to prepare for a 10,000 tpa scale operation.
According to today’s release, Argosy believes that the company is now positioned to be the only developer able to provide battery quality lithium carbonate at commercial qualities in the near-term.
Positioning Argosy Minerals for growth
Argosy managing director Jerko Zuvela said the new funding was a testament to the company’s project developments and future position.
Commenting on the $30 million placement, Mr Zuvela said:
We received a significant endorsement of our business with this placement, and are now fully funded to achieve 2,000 tpa scale production at our Rincon Lithium Project.
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.
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 10,000 tpa operation.
The Argosy share price has gained around 113% over the past 12-month period.
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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.