Argosy lays ground for offtake deal with Amperex investment

Argosy Minerals (ASX:AGY) has pocketed a strategic US$5 million ($7.57 million) investment from Amperex Technology Limited (ATL), which lays the groundwork for a potential lithium offtake agreement between the two companies.

Under a binding subscription agreement, Argosy will issue shares to ATL at $0.14631 each, representing a 15% premium to the company’s 10-day volume-weighted average price on 21 May.

The proceeds will be used for development work at Argosy’s Rincon Lithium Project in Argentina, as well as for working capital and other project expenses.

“We have already established a strong and mutual relationship, and ATL’s investment is an endorsement of our development progress and the battery-quality lithium carbonate product achieved at our Rincon Lithium Project,” Managing Director Jerko Zuvela says.

“This significant milestone further confirms Argosy’s ambitions and near-term growth phase to fully develop the Rincon Lithium Project.”

A subsidiary of Japanese electronics corporation TDK, Hong Kong-based ATL specialises in the research, development, and production of rechargeable lithium-ion batteries.

As such, the subscription agreement that underpins the investment also includes that Argosy and ATL negotiate a potential offtake agreement for lithium carbonate from the 2,000-tonnes-per-year Rincon facility.

Argosy and ATL have also discussed other cooperation opportunities, including access to ATL’s network to support the development of the Rincon Project.

Separate from the ATL investment, Argosy has appointed James Shay as COO. With a Bachelor of Engineering and more than 25 years of experience, Shay most recently spent 4.5 years at Albemarle (NYSE:ALB) as Vice President of Lithium Development Projects and Director of Lithium Hydroxide. Prior to Albemarle, Shay spent 7.5 years at BHP (ASX:BHP) in various operational and development roles.

Write to Oliver Gray at Mining.com.au

Images: Argosy Minerals
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Written By Oliver Gray
Originally from Perth, Oliver has a keen interest long-form journalism. He has written for a number of publications and was most recently Contributing Editor of The Market Herald’s opinion section, Art of the Essay.