Argosy Minerals Limited (ASX:AGY) has completed satisfactory due diligence to purchase the Mina Tincal tenement, which will expand its flagship Rincon Lithium Project located in Argentina.
Earlier this month, Argosy entered a binding option agreement giving it the exclusive right for six months to purchase the strategic 196-hectare Mina Tincal mining title.
READ: Argosy Minerals secures option to expand lithium project
Argosy has now elected to pay the US$400,000 option fee to the vendor.
By exercising the purchase option via a final additional payment of US$400,000, Argosy’s Rincon Lithium Project land area would increase to a total of up to 2,572.9 hectares.
Jerko Zuvela, managing director, said: “This strategic and highly prospective acquisition further confirms Argosy’s intent, ambition, and increasing scale to continue our aggressive development strategy to fast-track toward production of LCE product.
“The 31 hectare mining easement right becomes a significant benefit for Stage 2 operations.”
The additional tenement fills in previous land gaps
Strategically, Mina Tincal adjoins Argosy’s northern tenements into one combined collective group, allowing the company to apply for “Mining Group” status.
Having no land gaps is beneficial during lithium brine pumping operations and piping layout into the Stage 2 evaporation ponds currently under construction.
Significantly, it increases the overall scale of potential lithium brine pumping capacity.
Argosy’s immediate strategy to advance works on Mina Tincal will involve obtaining any necessary regulatory permits and approvals for future expansion of development works at the project.