The Perth-based company has exercised its option for Tonopah project and will grab all the project’s tenements.
Argosy is buying up the whole project from vendors Lithium Consolidated Ltd (ASX:LI3) subsidiary LCME Holdings Inc, Big Smokey Exploration LLC, ProspectOre LLC and ProspectOre Inc.
An expected transaction date for the US$60,000 acquisition is September 6, 2019.
Early-stage low-risk project
Argosy managing director Jerko Zuvela told the market today: “TLP provides an option to further expand our fast-track lithium development strategy, already in place at the Rincon Lithium Project, and secure a strategic foothold in a world-class mining jurisdiction.
“This project diversifies Argosy’s global footprint and provides another opportunity to utilise our lithium production experience to potentially develop TLP.
“Our immediate focus and priority remains developing the Rincon Lithium Project and progressing towards construction of the 2,000 tonnes per annum [lithium carbonate equivalent] production operation.”
The company views Tonopah project as an inexpensive early-stage low-risk project that it can take a similar approach to how it advanced its Rincon LCE project.
Critical mineral for US national security
Lithium is on the final list of critical minerals for US national security, making it attractive mineral to advance projects for in Western and North American jurisdictions.
Tonopah project is 40 minutes by road from the mining centre of Tonopah and extends over 34.25 square metres in Nevada’s Big Smokey Valley region.
The project is near regional infrastructure and is 336 kilometres from Las Vegas and 380 kilometres from Reno, Nevada.