News: Argosy Minerals to recapitalise, attracts sophisticated investors

Argosy Minerals (ASX:AGY) has entered into a capital raising engagement agreement with Capital and Corporate Advisors Pty Ltd in order to recapitalise the company and introduce new, independent professional and sophisticated investors onto register.

Key points of the engagement are an immediate share placement of up to 231,510,926 shortfall shares resulting from a recent rights issue, at an issue price of $0.002 for up to $463,021; and raising of $300,000 via convertible loan notes, with any conversion subject to shareholder approval.

Following successful completion of the above capital raisings, the company will repay $300,000 and issue 50,000,000 fully paid ordinary shares at a deemed issue price of $0.002 to Discovery Africa Limited (ASX:DAF).

This will represent full and final satisfaction of the remaining loan outstanding to DAF.

As part of the agreement, upon completion of the recapitalisation, Mr Ranko Matic and Mr Jerko Zuvela will be appointed as new directors, and Mr Peter Lloyd and Mr Graham Walker will resign as directors.

Argosy holds two graphite licences in Namibia and is capitalised at around $2 million.