Argosy Minerals Limited (ASX:AGY) is the subject of renewed investor interest in the market on confirming plans for a preliminary trial cargo comprising of 5 tonnes of high quality 99.5% lithium carbonate. Produced at the company’s industrial-scale plant, the cargo is scheduled for shipment later in the month as part of a sales agreement executed with Mitsubishi Corporation.
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The 5 tonnes cargo scheduled for shipment marks an important milestone as the company joins an exclusive list of international lithium carbonate exporters. In addition to the proposed first shipment, Argosy Minerals has an additional 99.5% lithium carbonate product in stock scheduled for the next delivery.
Likewise, Argosy Minerals has confirmed that its core strategy remains to continue delivering outcomes that have the potential to enhance value in the processing of Lithium Carbonate. The company has already opened discussions with a number of capital providers as it looks to raise additional capital to ramp up operations.
The company is eyeing new capital injection to commence construction and associated development works for its proposed 2,000tpa LiCo processing plant.
The new plant should allow the company to produce more high-quality lithium products tailored to product specifications of end-users. By producing good quality battery-grade lithium carbonate, Argosy limited should be able to elicit the much-needed demand in the market and consequently shrug off competition from other players. Likewise, the company should benefit over the longer term compared to other lithium companies.
The proposed shipment comes at a time when Argosy Minerals is fast-tracking its development strategy at the Rincon Lithium Project in Argentina. The company has already received all the necessary permits to commence works for the development of a modular lithium processing plant at the Rincon project site.
In addition, the company is in the process of submitting the necessary applications as it looks to enlarge the commercial scale of the operation project. Based on current plans, the works should start mid this year. Likewise, the company has already acquired a 100% interest in a prospective Tonopah Lithium project in Nevada. The company is now looking to formulate the most active development strategy for the project.
Similarly, the company is progressing its strategic investor and off-take process as it continues to attend strategic meetings in Japan with lithium industry participants. The company is looking to advance interest from such parties as it looks to broaden the market for its lithium carbonate and lithium hydroxide products.
The milestones achieved so far continue to affirm the company’s fast track lithium development strategy. Likewise, the milestones demonstrate long-term sustainability and progress toward commercial-scale development of its flagship project.
Argosy will also continue to monitor market dynamics and supply chain pressures. The ultimate goal is to limit pilot plant product operations to ensure cash preservation in case lithium prices tank. In addition, the company will continue to asses the scale for future pilot operations with focus and priority being on commencing construction and associated works as part of the 2,000tpa modular process plant.
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