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Argosy Minerals' shares rally on lithium development strategy in Argentina

Published: 11:51 14 Aug 2017 AEST

Argosy Minerals' shares rally on lithium development strategy in Argentina
Stage 2 pond construction works

Argosy Minerals Ltd's (ASX:AGY) shares have jumped 15.2% to $0.091 in morning trade as the company recently commenced Stage 2 pond excavation and construction works at its Rincon Lithium Project.

Rincon is located in the “Lithium Triangle” in Salta Province, Argentina.

The Stage 2 development works commenced ahead of schedule.

The Stage 1 evaporation ponds have been concentrating lithium brine since April.

Argosy is earning up to a 90% interest through multiple stages in the Rincon joint venture lithium project located in Argentina.

Timeline

Argosy is targeting the first set of the Stage 2 pond construction works to be completed during September.

Additional ponds are being scheduled, and pending approvals, are targeted for completion during October.

This will result in a combined total of ~10 hectares of newly constructed evaporation ponds.

The ponds are being fast-tracked to meet the commencement of the peak solar evaporation season, which usually begins during September and continues until April.

Jerko Zuvela, managing director, commented:

"The successful commencement of the next stage of pond construction works, an exponential increase in scale from the original Stage 1 ponds, continues to demonstrate the company’s aggressive development strategy, proficiency and expertise to fast-track toward production of LCE product, which is a near-term prospect that I am very excited about and will see Argosy as the second ASX-listed lithium producer."

Advanced discussions to finalise strategic investor process

Argosy continues to progress the strategic investor process, and has held a series of key meetings in China and Hong Kong over the past few weeks.

The objective is to achieve an outcome whereby a memorandum of understanding party will complete a binding investment agreement for Stage 2 funding for  Rincon.

Such agreement may likely be complemented by agreements for off-take or other value-adding commercial agreements.

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