Argosy Minerals Limited (ASX: AGY) is preparing to ship a preliminary trial cargo comprising five tonnes of high-quality lithium carbonate under a Sales Agreement executed with Mitsubishi Corporation RtM Japan Ltd.
Australia’s Argosy Minerals holds a 77.5% (and ultimate 90%) interest in the Rincon Lithium Project in Salta Province, Argentina and a 100% interest in the Tonopah Lithium Project in Nevada, USA.
Managing Director, Jerko Zuvela, said the >99.5% lithium carbonate has been produced at the company’s industrial scale pilot plant operations for shipment this month, adding Argosy to the exclusive list of international lithium carbonate exporters.
As per the conditions of the Sales Agreement, the company provided a Certificate of Analysis for each tonne of product and sent five pre-shipment samples (during December and January) – representative for each tonne of product being delivered – to the customer, which they have tested and confirmed for the product cargo to be delivered.
This enabled sales price information for this product cargo to br recently confirmed, as per the Sales Agreement terms, using a set formula agreed between the parties that references an industry standard benchmark index LCE product price, netting off in-country taxes, adjustments for product specifications, all associated shipping costs and commission fees.
Following confirmation of the sales price information, the company is now working through the process to receive the regulatory export approval, arrange the shipping documents and confirm the shipping schedule, with the product cargo expected to be shipped this month.
“This is another significant development milestone for the company, led by Pablo and the high-class Puna operations team, whose lithium processing expertise is world-class and provides us a distinct advantage to our lithium peers – having successfully proven our chemical processing capability in producing >99.5% LCE product and now working toward commercial scale production operations,” Mr Zuvela said.
This is an exciting period for Argosy and Puna, becoming the first high quality >99.5% lithium carbonate product exporter from Salta Province, as we continue toward full development of our Rincon Lithium Project.
“Furthermore, the company has additional >99.5% lithium carbonate product in stock in preparation for the next product delivery.”
Mr Zuvela said Argosy’s focus and priority will continue being the ~2,000 tpa modular lithium carbonate processing plant operation and associated funding solution, as the next step in the scale-up development of the Rincon Lithium Project, following receipt of regulatory approvals for construction of this scale operation.
The company is targeting a successful funding resolution, and to commence construction and associated development works for the ~2,000tpa Li2CO3 processing plant operation during H1 2020.