Argosy Minerals Limited’s (ASX:AGY) preliminary sales agreement with Mitsubishi Corporation RtM Japan Ltd for offtake from the Rincon project in Argentina is for an initial 100 tonnes of lithium carbonate over a 12-month period.
In a clarification statement today, Argosy said that there was flexibility in the agreement to extend the terms of the contract by mutual agreement for additional deliveries.
This would follow preliminary customer integration of the initial lithium carbonate product delivered.
READ: Argosy Minerals surges 65% after sealing offtake deal with Mitsubishi Corporation
The strategic arrangement with the Mitsubishi Corporation subsidiary enables Argosy to utilise the stage I industrial-scale pilot plant for small-scale commercial lithium carbonate production and product sales.
This applies while the company continues to prioritise efforts to secure a strategic relationship or partnership to secure the capex funding solution for successful commercial development of the Rincon project.
Clarification provided
In the clarifying statement, Argosy also advised that there were no material conditions that needed to be satisfied prior to proceeding with the agreement, nor any other material information relevant to the agreement.
Argosy is targeting the start of operations for the Mitsubishi Corporation RtM agreement in mid-2019, after receiving chemical reagents and completing preparations to scale-up the operational workforce at the pilot-plant site near Salta, Argentina.
READ: Argosy mulls lifting annual rate of planned lithium carbonate plant to 10,000 tonnes
The plant was first commissioned in April 2018 with first battery grade 99.5% lithium carbonate confirmed in June 2018.
LCE product produced from the pilot plant.
Argosy’s shares jumped 65% yesterday afternoon to 16 cents after announcing the sales agreement.
Managing director Jerko Zuvela said: “Argosy places considerable importance in working together with Mitsubishi RtM and the potential longer-term benefits this relationship may deliver.
“It is also a strong endorsement of Argosy, the Rincon Lithium Project and our fast-track development strategy towards commercial lithium carbonate equivalent (LCE) production.”
READ: Argosy Minerals outlines rights issue to raise up to $6.2 million for Rincon Lithium Project
Argosy has a 77.5% interest in the Rincon Lithium Project in Salta Province, Argentina, and is working towards an ultimate 90% interest.
Rincon is within the world-renowned Lithium Triangle, which is host to the world’s largest lithium resources.