Argosy Minerals Ltd. agreed to acquire about 34.25 square kilometers of tenements comprising the Tonopah lithium project in Nevada.

The company said Aug. 14 that it entered into a sale agreement with Lithium Consolidated Ltd. unit LCME Holdings Inc., Big Smokey Exploration LLC, ProspectOre LLC and ProspectOre Inc.

A due diligence period on the project will end Aug. 26, after which the company can purchase the project by paying US$50,000 to the vendors.

Argosy will also pay renewal costs for the 425 claims by Sept. 1, including the federal annual mining claim maintenance fee of about US$165 per claim and the county mining claims fee of about US$12 per claim.

The company will pay an additional A$500,000 upon delineating a JORC-compliant mineral reserve of 1 million tonnes of lithium carbonate equivalent product or first commercial production.

Argosy Managing Director Jerko Zuvela said the company will remain committed to its priority Rincon lithium project in Argentina and the near-term development of the 2,000-tonne-per-annum LCE production plant.