Pursuit Minerals (ASX: PUR) is primed to accelerate the development of its top priority Rio Grande Sur lithium brine project, with the Company having raised $3 million dollars through an oversubscribed placement to fund extensive exploration of the Argentinian Project.
The explorer has now received firm commitments from a number of sophisticated investors for the placement of approximately 250 million fully paid ordinary shares in Pursuit at an issue price of A$0.012 per share, with the placement being supported by existing investors and seeing a number of new high net-worth investors and institutions added to Pursuit’s register.
Funds will primarily be put towards an upcoming drilling campaign at the Rio Grande Sur Project which is scheduled to kick off in Q32023 and is expected to results in the creation of a maiden JORC-compliant resource, with an extensive Transient ElectroMagnetic survey underway across the Project to determine priority drilling targets.
Alongside funding, the initial drill campaign proceeds from the placement will also be used to finalise the Company’s acquisition of a lithium carbonate pilot plant to process brine extracted from the Rio Grande Sur, with the Company eying first production to kick off during second half of this year which will make Pursuit the third lithium carbonate producer on the ASX.
The plant in question has historically produced battery-grade lithium carbonate with purity in excess of 99.5 per cent and the Company has now engaged global leader in lithium processing and development Worley to conduct a dynamic simulation to adapt the lithium carbonate pilot plant to process Rio Grande Sur brine.
Additionally, a further 25,000,000 options will be issued to Inyati Capital and CPS Capital Group, who acted as joint lead managers for the placement, with these options being exercisable at 1.8c per share on or before 3 years from their date of issue.
The funding received from this placement allows Pursuit to keep up the rapid pace of development the Project has seen since the explorer finalised its acquisition of both the Project and its former owner Trilogy Metals in late March, with the Company receiving the green light to commence exploration of the Project’s largest tenement Mito in May.
Since this acquisition, uncovering the Project’s potential has been Pursuit’s top priority and with the Project covering approximately 3000 hectares of the massive Rio Grande Sur, which hosts an inferred resource of 2.1 million tonnes LCE at an average grade of 370mg/Li to a depth of 100m reported as part of an existing Canadian National Instrument, it is obvious to see why.
Development of the Project has been spearheaded by Aaron Revelle, whose extensive experience in the Argentinian lithium sector and history of taking Argentinian lithium brine projects into development has been invaluable in advancing the Project, with Pursuit electing Revelle as its CEO and Managing Director to take full advantage of his 15 years of mining executive experience.
The Company said it was delighted by the strong support it has received for the placement and that it looks forward to delivering for shareholders and stakeholders through the execution of our upcoming significant work programs.
“This raising will provide critical funding to conduct near-term, high-value-creating work programs at our Rio Grande Sur lithium project in Argentina,” Aaron Revelle said.
“Including an initial drilling program expected to culminate in a maiden JORC resource and completion of the acquisition of the pilot plant, subject to financial due diligence, which is planned to rapidly move Pursuit to becoming the 3rd lithium carbonate producer on the ASX.”
PUR’s Australian Stock Exchange-listed share price has risen 7.69 per cent and is currently trading at 1.4c (11.10 am UTC+ 8 hours).