The 10c per share raising comes at a hefty 23% discount to the 10-day average price, but is partially underwritten by CPS Capital Group, which has pledged $3 million.
Argosy said there was strong interest from third-party investors in backing the push, which will look to entice strategic partners, with good progress reported with potential Asian investors.
Funds will also be used to pay for the purchase of the nearby Mina San Jose and Jujuy tenements, which will expand its position on the Salta Province's Rincon salar, which are considered important for extending the project's future prospects.
The junior said the terms of the raising were designed to be "very attractive" to existing shareholders, with the new shares to account for 3-6% of the expanded capital.
Every three of the new shares comes with one option, exercisable at 20c before March 31, 2022.
The company raised $17 million in late 2017 to fund the development of the Rincon pilot plant, which successfully proved the chemical process can successfully produce battery grade lithium carbonate. Additional funds were used to complete a resource calculation and finalise a preliminary economic assessment.
In November, the company upgraded and increased its resource to 245,120 tonnes of contained carbonate, more than it had expected.
The company's stage one plant targets production about 500t per annum of lithium carbonate equivalent.
Stage two would have moved to 1500-2000tpa, although the company has suggested it may move directly to full-scale commercial development of 25,000tpa.
The PEA was released last quarter and confirmed a base-case 16.5-year mine life producing around 10,000tpa high value product with a pre-tax net present value of US$399 million and an internal rate of return of 53%.
The development would cost $141 million with a two-year payback.
Argosy was down to A$2.7 million cash at the start of the year, and expected to end this quarter with around $700,000.
The stock was at 41c at the start of 2018, and has gradually lost ground, dropping 11% on Friday to close at 11.5c after news of the raising was released. The entire company is now worth $106 million.
