On 9 November 2018, Argosy Minerals Limited (ASX: AGY) announced that it has executed separate binding Purchase Agreements with Ricardo Salome Guitian, Hernan Omar Viveros, Daniel Viveros, and Martin Viveros to acquire 3 additional tenements â Mina San Jose, Mina Jujuy, and Mina San Marcos. The additional three tenements are comprised of total tenement area of 209.5 hectares for the Rincon Lithium Project in Salta Province, Argentina. Following this news, the share price of the company increased by 7.317 percent with a market capitalization of $189.32 million as on 9 November 2018.Â
The company will be paying a combined total purchase fee of approximately US$538,702 after the successful completion of due diligence works and associated regulatory requirements, for the outright purchase of the three mining titles. As per the recent announcement, Mina Jujuy and San Marcos adjoin the Companyâs Mina Tincal tenement, allowing the Company to join these tenements into the Mining Group status for the purposes of regulatory applications for exploitation permits which are especially important for future potential commercial lithium brine pumping operations. Further, Mina San Marcos includes an additional 12-hectare mining easement located nearby the tenement within the Salar del Rincon.
As per Companyâs Managing Director Mr. Jerko Zuvela, these strategic and highly prospective tenements provide increased scale for future potential commercial operations, which will be highlighted by the long-term mine-life estimates currently being prepared as part of the PEA works.
The Rincon Lithium Project is now comprised of 2,794.4 hectares of significant lithium and associated infrastructure services/mining easement landholdings for future Stage 3 development and commercial production operations. Now that the acquisition agreements have been completed, the Company will prepare to finalize the JORC Mineral Resource and PEA.
In the recently released September quarter activities report, the company reported that it has initiated the work to prepare the JORC Mineral Resource estimate upgrade and Preliminary Economic Assessment (PEA) and it has made further progress with Stage 2 evaporation pond construction works. During the September quarter, the Company also achieved its principal Stage 1 milestone through successful processing works to confirm a scalable chemical process solution to produce battery quality lithium carbonate product for future development stages at the Rincon Lithium Project.
In the September quarter, Argosy Minerals completed all drilling works necessary for the JORC Resource estimate upgrade and PEA, which is comprised of 21 drill-holes. During the Quarter, the Company also confirmed that it has completed the construction and lining of an additional 9-hectare evaporation pond, complementing the existing ~10ha of operational evaporation ponds completed in January 2018. In the September quarter, the net cash used in operating activities was $3.15 million and Cash and cash equivalents at end of the period was $4.95 million.
In the last six months, the share price of the company decreased by 31.67 percent as on 8 November 2018. AGYâs shares traded at $0.220 with a market capitalization of circa $189.32 million as on 9 November 2018 (AEST 4:00 PM).
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