| 1 | As of: | Monday, 11 November 2019 |
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| 2 | Company Overview | AGY is an Australian company based in Perth committed to building a sustainable lithium production company, highly leveraged to growth in the lithium-ion battery sector. | AGY webpage:
http://www.argosyminerals.com.au |
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| The flagship project is Rincon (RLP); located in Salta Province of Argentina (within in the South American Lithium Triangle) |
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| In addition, in Aug 2019 AGY purchased the Tonopah Lithium Project (TLP) in Nevada, USA.This project lies ~4km from Albemarle’s (ALB) Silver Peak lithium brine operation. (*This project is in its early stages is not discussed further in this company summary.) | 27/09/2019: AGY purchases Tonopah:https://www.asx.com.au/asxpdf/20190827/pdf/447w5h4r3tw7nc.pdf |
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| 5 | Key Personnel | Chair:Alex Molyneux(appointed Aug 2016).Mr Molyneux receives no cash remuneration, instead agreeing to a securities package. | 15/08/2016: Chairman appointment:https://www.asx.com.au/asxpdf/20160815/pdf/4399pcs56cq0x7.pdf |
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| MD:Jerko Zuvela (appointed Oct 2016).Mr Zuvela first joined AGY as a Director in July 2014. | 20/10/2016: MD appointment:https://www.asx.com.au/asxpdf/20161028/pdf/43cfht7ykxns06.pdf |
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| Lithium Processing Expertise ablo Alluralde.(JV executed Sept 2016, and Services Agreement executed Oct 2016). | 20/10/2016:Alluradle Service Agreement executed:https://www.asx.com.au/asxpdf/20161028/pdf/43cfht7ykxns06.pdf |
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| 8 | Project Overview | The Rincon Project is a JV with Puna Mining S.A; an Argentinian company established in 2016 to own the Rincon Project.As of 27-02-2018, AGY has a 77.5% interest in Puna Mining S.A. (with further rights to earn up to 90%). | Ann 27-02-2018: Argosy Completes Increase in Rincon JV Ownership to 77.5%
https://www.asx.com.au/asxpdf/20180227/pdf/43rz407vtfszgc.pdf |
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| The JV was first announced in July 2016 and later executed in Sept 2016.
JV partners are Mr Pablo Alurralde and Mr Francisco Mendendez.Mr Alurralde is the lithium processing expert managing the project on the ground in Argentina. | ANN 01-07-2016:https://www.asx.com.au/asxpdf/20160701/pdf/4388r0lps5php9.pdf
ANN 20-09-2016:https://www.asx.com.au/asxpdf/20160920/pdf/43b9kqfdp3bp12.pdf |
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| AGY’s Rincon project is brine lithium (ie not hard rock lithium) within the Salar del Rincon in Salta Province, Argentina. | Google maps:
Salar del Rincon |
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| 11 | Fast-track Strategy | AGY have taken a non-traditional path to progress the resource development through to commercial operations.As opposed to seeking significant funding up front to establish and progress the project, instead with minimal funding investment to date,AGY have set about proving their processing solution/capability, including building evaporation ponds to support a first stage 2,000 tpa processing plant and proving their chemical processing expertise (Li2CO3 99.8%, LiOH 56.84%).These two critical factors were well advanced prior to releasing their JORC & PEA.AGY are now in the position to progress with constructing a scalable commercially viable plant, starting with 2,000 tpa (with plans to expand plant up to 15,000 tpa.), including a HOA in place with Mitsubishi MtR. |
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| 12 | Commercial Off-Take Arrangements | Mitsubishi RtM:In Aug 2019 AGY executed a HOA with Mitsubishi RtM for the supply of 2,000 tpa for an initial 3 year term, with a further 2 year option.The relationship with Mitsubishi has been developed over a considerable period of time, with Mitsubishi first visiting the Rincon project in Nov 2017.After AGY produced their first “BG quality” product in Aug 2018, Mitsubishi undertook extensive sample test works on their specific product requirements, which have culminated in both a Sales Agreement in March 2019 and the HOA in Aug 2019. | 23/08/201:AGY executes HOA:https://www.asx.com.au/asxpdf/20190823/pdf/447s8vc7m37ckp.pdf |
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| AGY have also undertaken potential customer liaison with other entities, including a Korean conglomerate who requested LiHO samples (refer info below). |
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| 14 | Li2CO3 | AGY produced their first product in June 2018, and confirmed “BG quality” of 99.6% in Aug 2018.AGY then undertook liaison with potential customers, providing product samples to specific customer specifications. | 06/08/2018: AGY Confirm 99.6%:https://www.asx.com.au/asxpdf/20180806/pdf/43x30wd7z20hcg.pdf |
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| In March 2019, AGY advised that following comprehensive processing and sample test works they had executed a sales agreement with Mitsubishi RtM.As such, AGY’s product has been rigorously tested and endorsed by a Tier 1 International cathode and battery participant. | 28/03/2019:AGY Sales Agreement with Mitsubishi RtM:https://www.asx.com.au/asxpdf/20190328/pdf/443vj6xrzqzrzt.pdf |
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| 16 | LiOH | Apr 2019, following interest from major Korean battery group, AGY produced 56.84% (standard “BG quality” is 56.5%) | 04/04/2019:Li Hydroxide Update:https://www.asx.com.au/asxpdf/20190404/pdf/44416l23bjstj5.pdf |
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| LiOH processing and test works still continue, with samples being prepared for interested Japanese parties. (refer pg 7 of latest Activities Report). | 30/10/2019:Sept Qrtly Report:https://www.asx.com.au/asxpdf/20191030/pdf/44b24q9khl8s7b.pdf |
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| 18 | Evaporation Ponds | ~38ha of ponds (progressively completed since Apr 2017), are in full operation concentrating brine to supply the planned 2,000 tpa plant, and will be ready to immediately feed a commercial scale plant (refer pg 6 of the Sept Qtrly) | 30/10/2019:Sept Qrtly Report:https://www.asx.com.au/asxpdf/20191030/pdf/44b24q9khl8s7b.pdf |
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| AGY's pond design involves large first stage ponds that are filled with raw lithium rich brine pumped from the production wells. This first stage concentrated brine is then pumped in smaller ponds to be further concentrated over several stages in progressively smaller ponds. |
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| Stg 1 ponds (1ha):concentrating since Apr 2017 |
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| The Stage 2 ponds are ~39 ha in total, and were constructed in three stages throughout 2018, hence have been feeding the Pilot Plant during it’s commissioning and test works, and the Sales Agreement with Mitsubishi RtM. |
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| Stg 2.1a ponds (~10ha):Concentrating since Jan 2018 | 16/01/2018onds Fully Operational:https://www.asx.com.au/asxpdf/20180116/pdf/43qvb0mvb9cbnn.pdf |
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| Stg 2.1b ponds (~9ha):Total ~19ha evaporation ponds as of Aug 2018 | 29/08/2018ond Update:https://www.asx.com.au/asxpdf/20180829/pdf/43xsspsrfm60hr.pdf |
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| Stg 2.2 ponds (~19ha):Total of ~38ha evaporation ponds completed as of Dec 2018 | 10/12/2018: Pond Update:https://www.asx.com.au/asxpdf/20181210/pdf/4412sdhq5sh3vc.pdf |
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| Stg 3 pondsesign and cost estimates have been undertaken for ~300ha of ponds; being 21 ponds, in preparation for inclusion in the 10,000 tpa project development applications.(refer pg 5 & 6 of June Qtrly) | June 2019 Qtrly:https://www.asx.com.au/asxpdf/20190730/pdf/446zlm7j7y4h1p.pdf |
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| 26 | Processing Plants | Pilot Plant:Apr 2018 the Pilot Plant started operating | 03/04/2018ilot Plant Start-up:https://www.asx.com.au/asxpdf/20180403/pdf/43swnthqp62lrt.pdf |
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| Following several week of commissioning, the pilot plant produced the first batch of LCE in June 2018. | 05/06/2018:First Batch of LCE:https://www.asx.com.au/asxpdf/20180605/pdf/43vk7781n9xpqk.pdf |
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| This was quickly followed in Aug 2018 with the first batch of BG quality produced. | 06/08/2018: AGY Confirm 99.6%:https://www.asx.com.au/asxpdf/20180806/pdf/43x30wd7z20hcg.pdf |
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| Scalable Chemical Process Solution:In Sept 2018, AGY confirmed the success of their chemical process solution and advised that the process was scalable.As such, AGY have progressed on a path to undertake an upscaling approach to constructing a commercial processing plant; ie an initial 2,000 tpa commercial plant can be constructed to commence revenue generation, which can then in turn be increased to 10,000 tpa (note the PEA released in late 2018 included an option for up to 15,000 tpa) | 13/09/018:Success and Scalable Processing Solution:https://www.asx.com.au/asxpdf/20180913/pdf/43y9d836d917ws.pdf |
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| Commercial Scale Plants:Mineral rights are under the jurisdiction of local Argentinean provinces (ie they are not determined at a federal level), as such, permits are granted via the Salta Mining Dept and Judiciary. AGY are well progressed in the permitting process for a 2,000 tpa commercial processing plant, with applications having been submitted earlier in 2019.In addition, AGY are also forging ahead with applications for a 10,000 tpa plant (refer pg 2 of the latest Activities Report). | 30/10/2019:Sept Qrtly Report:https://www.asx.com.au/asxpdf/20191030/pdf/44b24q9khl8s7b.pdf |
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| 31 | Next Key Milestones | It is anticipated that the 2,000 tpa permits approvals are imminent.It is also further speculated that the granting of these permits will be quickly followed by an update on funding arrangements for the commercial scale operations. |
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| 33 | Recent Key ANNS: | Sept 2019 Activities Report | 30/10/2019:Sept Qrtly Report:https://www.asx.com.au/asxpdf/20191030/pdf/44b24q9khl8s7b.pdf |
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| May 2019 AGM Presentation | 29/05/2019:AGM Presentation:https://www.asx.com.au/asxpdf/20190529/pdf/445g440wzcw2pq.pdf |
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| Nov 2018 PEA Presentation | 30/11/2018EA Presentation:https://www.asx.com.au/asxpdf/20181130/pdf/440v5cq90hdmyl.pdf |
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| Nov 2018 PEA | 28/11/2018EA:https://www.asx.com.au/asxpdf/20181128/pdf/440q663bmjz5wk.pdf |
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| Nov 2018 Upgraded JORC | 13/11/2018:Upgraded JORC:https://www.asx.com.au/asxpdf/20181113/pdf/44075h205314lb.pdf |
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| Link to ASX ANNS | http://www.argosyminerals.com.au/announcements/2019 |
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(20min delay)