Argosy Minerals rattles the investor tin
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Argosy is seeking bids from institutional and sophisticated investors. Christopher Pearce
Argosy Minerals has tapped Hunter Capital Advisors to manage a $15 million placement, after a transaction with a China-based battery maker fell over.
A term sheet sent to fund managers outlined that the lithium company was undertaking the placement and a share purchase plan of a further $2 million.
Argosy is seeking bids at 22¢ per share from institutional and sophisticated investors. The shares last traded on Friday when they closed at 31¢.
"Use of placement funds will be to continue already commenced Stage 2 project development works such as additional brine evaporation ponds and construction of the Stage 2 battery grade LCE (lithium carbonate equivalent) production plant," the term sheet said.
The company's shares were suspended on Wednesday pending an update on a previously announced placement and offtake arrangement with battery manufacturer Qianyun.
The initial deal was outlined in August and was to include a placement of $16.9 million of shares at 8.5¢, and a pre-payment of $US7.5 million relating to a five year offtake agreement.
The term sheet tells investors Qianyun has advised that the due diligence condition to its subscription agreement was not satisfied by the agreed end date, and Argosy has not agreed to grant to Qianyun a further extension.
Argosy "considers it preferable to conduct this placement - to progress project works and fast-track toward LCE production - which is less dilutive and not subject to Chinese regulatory approvals and further delay."
Street Talk understands off-take arrangements with Qianyun remain in place pending receipt of the prepayment by Qianyun.
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