ASX-listed Argosy Minerals on Thursday announced a $5-million strategic investment from lithium-ion battery maker Amperex Technology (ATL) and the appointment of James Shay as COO.
In terms of a subscription agreement, Argosy will place new fully paid ordinary shares in the company to ATL at $0.14631 a share, which is a 15% premium to the ten-day volume-weighted average price.
Argosy sees the relationship with ATL as an opportunity to leverage the lithium-ion battery producer and innovator’s technical capabilities in the development of its Rincon lithium project, in Argentina.
“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,” said MD Jerko Zuvela.
The subscription agreement includes that both companies engage in good faith to negotiate a potential offtake sales agreement for lithium carbonate product from the Rincon 2 000 t/y facility.
In parallel and complementary to the ATL strategic investment, Argosy will continue the strategic partner process to secure funding for the 10 000 t/y expansion operation through prepayment investment associated with long-term offtake arrangements from a tier-1 counterparty in the electric vehicle or battery supply chain.
