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Argosy Minerals Poised for Growth as Lithium Market Shows Signs of a Rebound

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By Colin Hay - 
Argosy Minerals ASX AGY capital raising Rincon lithium
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Battery metals specialist Argosy Minerals (ASX: AGY) has requested a trading halt ahead of the announcement of a much-anticipated capital raising.

The proposed raising follows the company’s recent announcement of its execution of a 60-tonne lithium carbonate spot sales contract.

Argosy will produce the battery quality (approximately 99.5% purity) lithium carbonate from its Rincon project in Argentina.

Strong Support Expected

Evolution Capital is assisting Argosy with the raising for a minimum of $2 million to fund further development works at Rincon.

Strong support is expected for the placement, with the late June announcement of the deal with the unnamed Hong Kong-based chemical company leading to a spike in interest and enquiries from battery industry participants.

Argosy has also reported that several parties had accessed its data room as the company pursues strategic partner opportunities.

Particularly Attractive

Argosy’s battery metals portfolio is considered particularly attractive with seemingly improved sentiment for lithium companies highlighting the potential broader outlook for the space.

“We were pleased to receive such strong interest for the sale of our battery quality lithium carbonate product,” managing director Jerko Zuvela said in announcing the Hong Kong deal.

“With our positive project fundamentals, we will be strong beneficiaries of the EV/lithium sector resurgence noting the significant development milestones achieved to date at our Rincon lithium project.”

SMM Fixed Price

The spot sales contract has an agreed fixed price referenced from Shanghai Metals Market (SMM) battery grade lithium carbonate price.

Delivery terms include free on board at the port of Buenos Aires, with an upfront payment of 30% and the 70% balance paid prior to ship loading.

“We are delighted to be part of an exclusive group of battery quality lithium carbonate product exporters, given the challenges encountered by many of our peers attempting to achieve this feat,” Mr Zuvela added.