Emerging lithium brine producer Argosy Minerals (ASX: AGY) has inked a binding option agreement with Colorado SA to acquire the Mina Tincal tenement, which will expand the potential of its Rincon project in Argentina’s “Lithium Triangle”.
Under the agreement, Argosy Minerals has the exclusive right to purchase the tenement’s mining title for a six-month period. Argosy Minerals must pay a US$400,000 and complete due diligence by 22 November 2017.
An additional US$400,000 is payable if Argosy Minerals elects to purchase the mining title.
Mina Tincal encompasses 196 hectares in Argentina’s Salta Province and is adjacent to the northern part of the Rincon project. The agreement also allows for a further 20 hectares at the nearby Olacapto industrial site, which could host the stage two pilot plant.
The Olacapto site is close to necessary infrastructure including natural gas, electricity, rail, and has approvals in place for drilling to get water.
“This strategic and highly prospective acquisition further confirms Argosy Mineral’s intent, ambition, and increasing scale to continue our aggressive development strategy to fast-track toward production of LCE [lithium carbonate equivalent] product,” Argosy Minerals managing director Jerko Zuvela said.
Once due diligence has been completed and Mina Tincal secured, Argosy Minerals plans to obtain all regulatory permits required to develop the tenement.
Once acquired, the Mina Tincal will boost Argosy Minerals’ landholding in the area to 2,561.9 hectares of lithium prospective land and infrastructure.
Last week, Argosy Minerals reported it was on track to produce its first battery grade LCE from Rincon by the end of the March 2018 quarter.
The company has developed a 500 tonne per annum pilot plant that can produce LCE for the battery market.
Argosy Minerals is finalising its stage two development at Rincon with 11 hectares of evaporation ponds and a production well due for completion by the end of November.
Full scale commercial production is targeted under stage three development.