The agreement with CCK Industrial Group Co., Ltd provides scope to work towards a binding agreement whereby CCK may invest to facilitate the funding of Argosy’s Stage 2 development works at Rincon.
CCK is a Chengdu based conglomerate with more than US$700 million in annual turnover.
The company and CCK will now progress with further discussions with an aim to formalise an investment proposition for the Stage 2 funding.
The agreement is a result of a number of recently held meetings in China with several interested parties.
Jerko Zuvela, managing director, commented:
"We are delighted with CCK’s interest to fast-track Stage 2 development works at the Rincon Project and continue our comprehensive development strategy toward production of lithium carbonate equivalent product."
Rincon Lithium Project
Argosy is earning up to a 90% interest in the Rincon joint venture lithium project located in Argentina.
The company plans to produce a laboratory scale quantity, targeting up to 150 tonnes of lithium carbonate equivalent (LCE) product from the project.
Argosy will earn a 50% interest by completing its proposed Stage 1 work schedule:
- Environmental studies and regulatory approvals/permits (December quarter 2016);
- Pond construction and associated works, including contractor tendering (March quarter 2017);
- Pond lining and associated works (June quarter 2017);
- Brine extraction, pumping, storage and transportation works (September quarter 2017);
- Pilot plant construction and test-work (December quarter 2017); and
- Pending success of the Stage 1 development, product LCE product (March quarter 2018).
Argosy together with its strategic adviser, Airguide International Pte Ltd recently held meetings in China with several interested parties to discuss their potential investment to fast-track Rincon.
CCK were particularly attracted by Argosy’s target to produce LCE product in the short to medium term at Rincon, for potential funding, off-take, partnership or other value-adding commercial agreements in consideration for Stage 3 development of the project, and joint venture partner Pablo Alurralde’s expertise and experience in processing and producing LCE product.
Discussions are ongoing with other interested Chinese and non-Chinese parties.