VANCOUVER (miningweekly.com) – Vancouver-based project developer Lithium X has raised gross proceeds of about C$15-million through a bought deal offering, which it will put to work at its flagship Sal de los Angeles lithium brine project, in Argentina.
The junior offered 7.9-million common shares at a price of C$1.90 apiece, sold by a syndicate of underwriters led by Canaccord Genuity and GMP Securities.
Lithium X plans to use the net proceeds of the offering to continue the development of Sal de los Angeles by completing a work programme aimed at updating the mineral resource estimate for the project, completing a feasibility study on the project, and building an initial ponding facility. The company also intends to use a portion of the net proceeds for general working capital purposes.
Lithium X, which owns the Sal de los Angeles project in a joint venture with Salta Exploraciones, has recently received permits to build an initial ponding facility.
The initial ponding facility is designed for an output of about 2 500 t/y of lithium carbonate equivalent. The permits allow for the construction of brine collection, pumping, piping and ponding facilities comprising 62.6 ha of lined ponds, designed to produce a high-purity 5% lithium concentrate.
The ponding facility will cover a maximum of 100 ha (about 1%) of the 8 156 ha of the Sal de los Angeles landholdings.