They sure did, and that's exactly the point. Thacker Pass is projected to require CAPEX of US$2.93 billion. Financing has been secured from various channels, comprising: US$650 million from GM in exchange for exclusive offtake rights for the initial 15 years, a US$2.26 billion loan from the US Department of Energy (as previously mentioned by you), and the cap raise this week (US$275m), totalling US$3.185 billion. So even with US$2.91b of external funding already sorted (which is over 95% of projected CAPEX), LAC still had to dilute their existing shareholders by 25%, and at a 25% discount to boot.
Now, returning to my original (but connected) point. It's highly improbable for a strategic partner to invest funds equivalent to 2-3 times the market cap of a company, which is the likely requirement for AGY. The US Government isn't inclined to extend such a loan to AGY; the loan for Thacker Pass was earmarked for a strategic asset. Similarly, the Argentinian Government isn't poised to provide funding (because they're broke), nor is the Australian government solely because AGY is an Australian company. That really only leaves a pre-paid offtake, which has never occurred at the scale required by AGY (240% of market cap), handing over part ownership to someone else (which is just shareholder dilution in disguise) or non-government debt (which again is unlikely to cover 240% of market cap).
The most viable option entails leveraging a blend of financing sources, akin to what LAC did, including a cap raise. In the case of AGY I'm anticipating substantial dilution and a significant discount due to the current state of the lithium market.
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AGY
argosy minerals limited
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2.9¢

Ann: Rincon Lithium Project - Progress Update, page-103
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Last
2.9¢ |
Change
-0.005(14.7%) |
Mkt cap ! $42.22M |
Open | High | Low | Value | Volume |
3.0¢ | 3.1¢ | 2.7¢ | $412.6K | 14.22M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 3162439 | 2.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.9¢ | 4366 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
8 | 3162439 | 0.028 |
7 | 2694681 | 0.027 |
10 | 3398514 | 0.026 |
18 | 2913791 | 0.025 |
6 | 11708286 | 0.024 |
Price($) | Vol. | No. |
---|---|---|
0.029 | 4366 | 1 |
0.030 | 1191077 | 11 |
0.031 | 894224 | 6 |
0.032 | 769011 | 3 |
0.033 | 1328420 | 4 |
Last trade - 12.17pm 07/07/2025 (20 minute delay) ? |
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