Australian mining company Xantippe Resources (XTC) is looking to raise up to A$45.9m ($31m) in capital to fund its lithium growth plans.
Through the renounceable entitlement offer, its shareholders can acquire four new shares for each share already held in the company at 1¢ apiece.
The proceeds will be used to purchase a stake in a lithium project and for funding exploration programmes. The funds will also offer working capital and support lithium technology, logistics and supply chain operations.
Xantippe has made a non-binding proposal to acquire a 25% stake in the Fundos del Plata Properties, in Argentina, from Minera Collasuyo, for $5m (1.36bn pesos).
This project in the province of Catamarca covers 6,274 hectares (ha).
The proposal is conditional upon due diligence and other conditions, including regulatory clearances. The possibility of the offer materialising into a deal is still uncertain.
Xantippe aims to finalise its due diligence and negotiate a binding agreement in two months.
The company is a lithium explorer focused on brine projects in Argentina and Hard Rock projects in Australia and is developing high-prospective packages in both countries.
Its tenements are located within Argentina in the heart of the Lithium Triangle covering Argentina, Chile and Bolivia. It owns eight tenements, together spanning more than 21,900ha.
The entitlement offer will launch on 1 August and close in ten days.
This will be followed by a share consolidation in September, which aims to convert every 200 ordinary shares into one.
The consolidation is said to offer a platform for future growth.
Xantippe executive chairman John Featherby said: “With the appointment of Roth Capital Partners LLC as strategic advisers, operations and relationships now established in Argentina and a core team in place, XTC is looking to capitalise on its strategic position within the Latin American lithium potential. It is an exciting time for the company.”
