Motley Fool Staff | September 13, 2017
Credit: iStock
On Wednesday the Argosy Minerals Limited(ASX: AGY) share price continued its strong run and reached a new all-time high of 19 cents.
This means that the mineral exploration company’s shares have now gained over 130% since this time last month.
Why have its shares gone gangbusters?
The main catalyst for this gain was a company-transforming announcement in August which revealed that Argosy had signed a binding investment and off-take agreement with Qingdao Qianyun. Qingdao Qianyun, one of China’s fastest growing battery materials companies, took a 19.9% stake in Argosy via a $16.9 million placement.
On top of this it made a $9.5 million upfront prepayment for an agreed quantity of battery grade lithium carbonate equivalent product during the first year of production at its Rincon Lithium Project.
Pleasingly, the money raised will more than cover the Stage 2 development expenditure budget for the Rincon Lithium Project.
AGY Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
