Argosy Minerals (ASX:AGY) has entered a binding option agreement giving it the exclusive right for six months to purchase the strategic Mina Tincal mining title at its Rincon Lithium Project in Argentina.
The 196-hectare mining title also includes an additional 20-hectare mining easement at the nearby industrial site where Argosy plans to construct its Stage 2 pilot plant.
Argosy is fully funded at Rincon through to first production of targeted battery grade lithium carbonate equivalent (LCE) product, currently anticipated during the March 2018 quarter.
Jerko Zuvela, managing director, commented: “This strategic and highly prospective acquisition further confirms Argosy’s intent, ambition, and increasing scale to continue our aggressive development strategy to fast-track toward production of LCE product.
“We are committed to building a sustainable lithium production company.”
Option agreement details
Strategically, Mina Tincal adjoins Argosy’s northern tenements into one combined collective group, allowing the company to apply for ‘Mining Group’ status for regulatory purposes.
This is especially important during lithium brine pumping operations and piping layout into the Stage 2 evaporation ponds currently under construction, and most significantly, increases the overall scale of potential lithium brine pumping capacity.
Argosy will pay an option fee totalling US$400,000 by 22 November 2017 and will conduct due diligence works during that time.
Argosy can then elect, at any time during the binding and exclusive option period, to purchase the mining title and associated mining easement right for an additional fee of US$400,000 to the vendor by 15 May 2018.
Funded and on-track for lithium production
Argosy remains on track at Rincon where initial Stage 2 evaporation pond construction works are nearing completion including earth moving works and the installation of pond lining material.
When Stage 2 is combined with the Stage 1 evaporation ponds already constructed, Argosy will have over 11 hectares of evaporation ponds concentrating lithium brine.
Argosy recently raised $17 million from a combined placement and share purchase plan.