Argosy Minerals Ltd. executed a nonbinding heads of agreement with Mitsubishi Corp. unit Mitsubishi Corp. RtM Japan Ltd. to supply 2,000 tonnes per annum of lithium carbonate product from its Rincon lithium project in Argentina.
The agreement stands for an initial term of three years, but is extendable for a further two-year period.
The company said Aug. 23 that the terms of the agreement align with plans to construct a 2,000-tonne-per-annum production plant at Rincon, for which it is holding talks with various parties to secure capital expenditure funding.
Meanwhile, the two companies will continue discussions to enter into a detailed definitive offtake supply agreement. However, if it is not executed, the parties will have an option to terminate the heads of agreement.
The product will be purchased at market price, subject to agreement by both parties before first delivery.
In March, Argosy executed a sales agreement with the Mitsubishi unit for an initial supply of up to 100 tonnes of lithium carbonate product over a 12-month period from Rincon.
