On December 21, 2018, Argosy Minerals Limited announced the further progress toward a preliminary off-take arrangement for stage 1 LCE product from the industrial scale pilot plant operations at the Rincon Lithium Project. The project is in the “Lithium Triangle” in Salta Province, Argentina.
Argosy Minerals Limited (ASX: AGY) is in the mining business. Listed in 1997, the company focuses on exploration and production of minerals. It currently has 77.5% interest in the Rincon Lithium Project with the right to move to 90%.
As a part of the on-going customer testing and product customization process, the company has provided additional lithium carbonate product test samples to preferred potential customers in Asia, to ensure future customer sales are consistent in quality and specification, and any product impurities are systemized at the customers end, for their product manufacturing requirements and meeting their own customers specifications.
These test samples were processed to a set product specification as determined with the potential customers. The company considers it critical to ensure their LCE product is fit for the purpose and tailored to supply individual customer requirements.
Argosy Minerals Limited had organized an independent verification testing. The tests were done by Alex Stewart International Laboratory in Argentina, which confirms the specified 99.5% Li2CO3 content, as per customer specification, achieving comparable results to those from the company’s in-house laboratory located at the site of the company’s industrial-scale pilot plant.
The product qualification process is an industry norm and to which all cathode and battery manufacturers must adhere to. This process will ensure that the company is placed in a strong position for future product sales. Argosy Minerals is one of the first new LCE product suppliers which conducted this process, and it will help the company to establish its credentials well before many other lithium companies.
This milestone was achieved through the exclusive and proprietary successful chemical process solution which was developed by the company adopting an extensive processing test-works phase over the past 6 months.
As stated by Argosy’s Managing Director Jerko Zuvela, the company will continue to achieve significant development milestones to further de-risk the project, including the delivery of these additional customer samples and the keenly sought independent testing validating the company’s in-house laboratory results.
For any further testing and product customization works, the company will work towards concluding a preliminary off-take arrangement for Stage 1 product. The company is currently installing complementary plant equipment to start obtaining more systematic product output.
Given the batch-scale and nature of the Stage 1 pilot plant, to then target ongoing, steady state operations from the pilot plant to produce customized LCE Product during Q1, 2019, the company is in the process of installing additional plant equipment. With the PEA results being reviewed by potential off-take and/ strategic investor groups, the company will pursue advanced discussions with such strategic parties for potential full commercial or modular scale Capex funding/investment.
Argosy’s fast-track development strategy has put them in a unique position – to produce LCE product from their Stage 1 industrial-scale pilot plant and due to this, it will attract significant interest from leading battery and cathode industry participants.
In the last six months, the share price of the company has shown a negative return of 50 percent as on 19 December 2018 and 39.13 percent down over the past one month. The shares closed at $0.125 today with a market capitalization of $124.67 million.
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