Melbourne-based exploration company Patagonia Lithium plans to raise up to $2.15 million through a convertible note issue and a non-renounceable entitlement offer.

Executive Chairman Phil Thomas will contribute $150,000 and take up his full entitlement of $34,000.

Southeast Mingqing Supply Chain (Fuyang), a shareholder of the company, also committed to subscribe for its full entitlement under the entitlement offer, with an additional $1.5 million subject to overseas direct investment approval.

The convertible note issue will see the issuance of up to 4,444,445 shares converting at $0.09.

The funds raised will be directed towards completing the current drill program in Argentina, preparing an updated mineral resource estimate, and advancing the company's Brazilian exploration efforts.

The entitlement offer opens on July 23 and closes on Aug. 9, with new shares expected to be quoted on Aug. 16.

The Company has been able to achieve outstanding results from its Formentera Lithium Brine Project.