Argosy Minerals' shares rally on lithium development strategy in Argentina

Argosy Minerals' shares rally on lithium development strategy in Argentina

Argosy is targeting lithium carbonate equivalent production in early 2018.

Argosy Minerals Ltd's shares have jumped 15.2% to $0.091 in morning trade as the company recently commenced Stage 2 pond excavation and construction works at its Rincon Lithium Project.

Rincon is located in the “Lithium Triangle” in Salta Province, Argentina.

The Stage 2 development works commenced ahead of schedule.

The Stage 1 evaporation ponds have been concentrating lithium brine since April.

Argosy is earning up to a 90% interest through multiple stages in the Rincon joint venture lithium project located in Argentina.

Timeline

Argosy is targeting the first set of the Stage 2 pond construction works to be completed during September.

Additional ponds are being scheduled, and pending approvals, are targeted for completion during October.

This will result in a combined total of ~10 hectares of newly constructed evaporation ponds.

The ponds are being fast-tracked to meet the commencement of the peak solar evaporation season, which usually begins during September and continues until April.

Jerko Zuvela, managing director, commented:

"The successful commencement of the next stage of pond construction works, an exponential increase in scale from the original Stage 1 ponds, continues to demonstrate the company’s aggressive development strategy, proficiency and expertise to fast-track toward production of LCE product, which is a near-term prospect that I am very excited about and will see Argosy as the second ASX-listed lithium producer."

Advanced discussions to finalise strategic investor process

Argosy continues to progress the strategic investor process, and has held a series of key meetings in China and Hong Kong over the past few weeks.

The objective is to achieve an outcome whereby a memorandum of understanding party will complete a binding investment agreement for Stage 2 funding for  Rincon.

Such agreement may likely be complemented by agreements for off-take or other value-adding commercial agreements.

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