- Argosy Minerals has signed a sale agreement with LCME to purchase the Tonopah Lithium Brine Project in Nevada
- This purchase places Argosy in a prime position to leverage its lithium brine processing expertise for the growing Electric Vehicle (EV) market
- LCME’s parent company, Lithium Consolidated, is pleased with the sale as it allows it to move from the lithium brine sector to rock lithium exploration
Argosy Minerals has signed a sale agreement with Lithium Consolidated subsidiary LCME Holdings, as well as Big Smokey Exploration, ProspectOre LLC and ProspectOre Inc.
The binding sales agreement is for the 100 per cent purchase of the Tonopah Lithium Brine Project in Nevada, U.S.
Argosy currently owns a 77.5 per cent interest in the Rincon Lithium Project in Salta Province, Argentina. Its strategy is looking for early stage, sustainable lithium projects to break into the growing lithium-ion battery market.
“Argosy has achieved significant development milestones at Rincon, notably ≥99.5 per cent lithium carbonate production from the industrial scale pilot plant, and we have now selected TLP to further expand our fast-track lithium development strategy,” Argosy Managing Director Jerko Zuvela said.
The Tonopah Lithium Brine Project is located in one of the world’s most favourable and stable mining areas, as well as being home to the United States’ growing electric vehicle industry.
“The U.S is fast becoming a powerhouse in the EV industry and its government is taking steps to promote the highly strategic battery minerals industries,” Jerko said.
Lithium Consolidated (Li3) Chairman Brian Moller is pleased with the sale of the project.
“The sale enables Li3 to exit from the lithium brine exploration sector, leaving it well positioned to execute on its strategy to develop a globally significant portfolio of hard rock lithium exploration assets and potential, future lithium mines,” Brian said.
Upon completed of conditions of the sale agreement, Argosy will purchase a 100 per cent interest in Tonopah and the 425 mining claims, for a total price of up to approximately A$585,000.
The company is expected to commence due diligence enquiries and if it chooses to proceed with the sale, Argosy will pay an option fee of US$10,000 to have the right to purchase the project, by exercising the option before August 26, 2019.
The Tonopah Project is set to put Argosy in a “prime position” to take advantage of an established mining region and the growing lithium market.
Argosy shares are up a slight 3.03 per cent as at 1:38pm AEST today, trading for 10 cents each in a $103.48 million market cap.
Li3 is also enjoying a bump in share price following the agreement, with shares up 9.09 per cent to trade for 6 cents apiece.