Argosy Minerals has announced a $5m investment from lithium-ion battery manufacturer Amperex Technology (ATL).
The investment will be made through a placement of new shares.
Placement of new fully paid ordinary shares in Argosy to ATL is set at $0.14631 per share, representing a 15% premium over the 10-day volume-weighted average price as of 21 May 2024.
ATL also committed to a 12-month standstill period for its shares, underscoring a long-term investment approach.
The partnership is expected to strengthen Argosy’s near-term growth phase and fully develop the Rincon Lithium Project.
ATL’s substantial technical capabilities in lithium-ion battery production is anticipated to support Argosy’s ambitions.
Additionally, the agreement paves the way for both companies to negotiate a potential offtake sales agreement for lithium carbonate from Argosy’s Rincon 2,000mt per annum facility.
Currently, product testing and next-step qualification processes are underway to prepare for this offtake agreement.
Discussions between the two have also covered future strategic cooperation opportunities, including using ATL’s networks to support the development of the Rincon Lithium Project, aligning with ATL’s growth and future lithium requirements strategy.
In addition to the ATL investment, Argosy is pursuing other strategic partnerships to fund the expansion of its operations.
The company is seeking prepayment investment linked to long-term offtake arrangements from a tier-1 counterparty in the electric vehicle (EV) and battery supply chain.
Argosy emphasises the importance of mutual alignment and long-term sustainability in its strategic arrangements. It aims to synchronise these partnerships with the completion of detailed engineering works and the awarding of an EPCM contractor.
The funds from ATL’s investment will be allocated to project development, working capital, corporate expenses, and related project expenditure. The subscription agreement is subject to standard conditions and typical terms for agreements of this nature.
Argosy managing director Jerko Zuvela said: “I am delighted to welcome ATL as a new strategic shareholder. 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.
“This significant milestone further confirms Argosy’s ambitions and near-term growth phase to fully develop the Rincon Lithium Project.”
