Patagonia Lithium (ASX:PL3) has announced a fully underwritten pro-rata non-renounceable entitlement offer to raise $2.68 million. The funds will be used to advance drilling activities and prepare a resource estimate within the Formentera Project, located in Argentina. Patagonia Lithium focuses on acquiring and exploring prospective lithium properties in the lithium triangle in Argentina and also staked concessions in Brazil in 2024. The company aims to identify and develop lithium resources in South America.
Under the terms of the offer, eligible shareholders are entitled to subscribe for one new share for every two shares held. The subscription price is set at $0.045 per new share. Existing shareholders Jose Manzano and Magnus Capital have fully underwritten the offer, demonstrating their confidence in the company’s prospects.
Patagonia Lithium intends to utilise the raised capital to target a higher level of mineralisation within the indicated and measured resource categories at the Formentera Project. The Formentera Project, situated in Paso Salar, Jujuy Province, encompasses 1,752 hectares and is considered promising for both lithium and borates.
The offer is scheduled to close at 5pm AEST on 21 August 2025. This capital raise represents a significant step for Patagonia Lithium as it continues to explore and develop its lithium assets in South America.
