Argosy secures $15m for Rincon lithium project

Rincon Project. Image via Argosy.

Argosy Minerals has locked in $15 million in funding through a share placement that will help it accelerate development of the Rincon lithium project joint venture in Salta Province, Argentina.

The agreement follows the breakdown of a 19.9 per cent share placement deal that was announced with Chinese battery company Qingdao Qianyun in August.

That deal was abandoned due to Qianyun’s delayed response in returning due diligence requests to Argosy, with the former failing to provide the required reports to execute the transaction.

Argosy’s managing director Jerko Zuvela explained that the new deal was made under “substantially better” terms than the Qianyun agreement, which he cited as prone to “complex and time-consuming Chinese regulatory approvals”.

LCE lithium production at Rincon is now fast tracked as a result of the new deal, and its first battery-grade products are expected to be ready to ship in first quarter 2018.

Argosy has also secured an agreement to increase its interest in the lithium joint venture to 77.5 per cent.