Argonaut Resources NL (ASX:ARE) has secured $1.809 million in funding following an oversubscribed entitlement offer, positioning the company well to carry out lithium-focused exploration on the Higginsville Project in Western Australia.
The company’s entitlement offer enjoyed strong support from shareholders both institutional and professional, closing oversubscribed after meeting its goal of $1,809,513.
Eligible shareholders were invited to apply for one new ordinary Argonaut share at an issue price of $0.001 for every two existing ordinary shares held as of 7:00pm on Monday, August 29, 2022.
Eligible shareholders who accepted their entitlement in full also had the opportunity to take up additional new shares in excess of their entitlement.
Use of funds
Argonaut intends to leverage the funds generated by the entitlement offer to fund exploration for potentially lithium-bearing pegmatites at the Higginsville Project in Western Australia, as well as expenses related to the recovery of the Lumwana West exploration licence in Zambia, general working capital and costs associated with the entitlement offer itself.
The Higginsville Joint Venture (JV) sits in the Eastern Goldfields of Western Australia, managed by Argonaut Resources NL (80%) with Loded Dog Prospecting.
The project is prospective for gold, nickel and lithium mineralisation.
The Lumwana West project is located in the Central African Copperbelt, North-Western Province, Zambia, prospective for copper and cobalt.
Argonaut says it is working with the relevant Zambian authorities to reinstate its ownership of exploration licence 22399-HQ-LEL, Lumwana West.
Read: Argonaut Resources seeks to fund lithium exploration and licence recovery efforts with entitlement offer