Argosy (ASX:AGY) secures strategic US$5m Amperex investment for Argentine lithium

Argosy (ASX:AGY) secures strategic US$5m Amperex investment for Argentine lithium

May 24, 2024 Off By Jack Baker

Argosy Minerals has secured a strategic US$5 million investment from Hong Kong-headquartered battery producer Amperex Technology Limited and a boon for its Rincon lithium project in the Salta Province of Argentina.

Amperex jumped in at a 15 per cent premium to the 10-day average and will now negotiate over offtake deals from the current 686-plus thousand tonne lithium carbonate resource and two thousand tonne-per-year production facility.

The Australian-listed explorer and developer is confident in a fruitful relationship with its new investor, who on top of the cash, will be providing substantial technical know-how to fully develop Rincon.

Argosy Managing Director Jerko Zuvela said he was delighted to welcome a new strategic shareholder with who it had already established a strong, mutual relationship.

“ATL’s investment is an endorsement of our development progress and the battery quality lithium carbonate product achieved at our Rincon Lithium Project,” Zuvela said.

“This significant milestone further confirms Argosy’s ambitions and near-term growth phase to fully develop the Rincon Lithium Project.”

The lithium-ion technologists have agreed to place their new shares into a year-long standstill period, with a subscription agreement mandating good faith negotiations for potential offtake.

Argosy is now producing at a steady state from its starter facility at Rincon after some early challenges and looks toward steadily building production with some hard-earned experience.

The Perth-based company’s new partner is well known as a leading producer and innovator of lithium-ion batteries and well understands a buyer’s end for offtake arrangements over Rincon carbonate.

And Argosy’s new Chief Operating Officer James Shay and his quarter century of experience should prove another advantage, last in the role of VP Lithium Development Projects and Director – Lithium Hydroxide at Albermarle after a long stint at BHP.

The preliminary economic assessment over Rincon showed it could support a 10,000 tonne per year operation over a venerable 16 and a half years of mine life, and Argosy has been signed off by the Argentinian Government to develop its larger scale ambitions.

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