PERTH (miningweekly.com) – ASX-listed Argosy Minerals has struck a deal with fellow listed Lithium Consolidated to acquire the Tonopah lithium project, in the US.
Argosy will pay a $10 000 option fee to the vendors, which also include Big Smokey Exploration and ProspectOre, and will conduct a due diligence on the project, closing on August 26.
On making an election to purchase, Argosy will pay the claims renewal cost on each of the 425 claims making up the project, as well as the federal annual mining claim maintenance fee of $165 per claim, and the county mining claims fee of around $12 per claim, as well as a purchase price of $50 000 to the vendors.
On achieving a Joint Ore Reserves Committee-compliant mineral reserve of one-million tonnes of lithium carbonate equivalent, or on the start of first commercial production, Argosy will make a milestone payment of A$500 000 in either cash or shares.
Argosy MD Jerko Zuvela on Wednesday said that the acquisition of the Tonopah project would diversify the company’s global footprint and provide an opportunity to use its lithium production experience to potentially develop Tonopah.
“The US is fast becoming a powerhouse in the electric vehicle industry and its government is taking steps to promote the highly strategic battery minerals industries. Tonopah will place Argosy in prime position to take advantage of our expertise in an established mining region.”
Zuvela added, however, that Argosy remained committed to the Rincon lithium project, and the near-term development of the 2 000 t/y lithium carbonate production plant.
Lithium Consolidated chairperson Brian Moller said that the sale of the Tonopah asset would enable the company to exit the lithium brine exploration sector, leaving it well positioned to execute a strategy to develop a globally significant portfolio of hard-rock lithium exploration assets, and potential future lithium mines.
The project is located in the Big Smokey Valley region in Nevada, covering some 34.25 km2. Subject to the successful completion of the due diligence, Argosy will start work to determine a development strategy.