(Reuters) - Lithium-focused explorer Argosy Minerals Ltd on Wednesday said it has executed an agreement to buy tenements comprising the Tonopah Lithium Project in Nevada, United States.
Argosy said the sale agreement was executed with a unit of Lithium Consolidated Ltd, Big Smokey Exploration LLC, ProspectOre LLC and ProspectOre Inc.
Argosy will pay an initial purchase price of $50,000 and will offer another A$500,000 ($340,000) upon achieving certain production milestones, the company said in a statement.
A price downturn for lithium has led to a recent spree of deals amid interest from battery makers in securing long-term agreements for the mineral ahead of an expected recovery into the next decade as electric vehicles sales boom.
Reporting by Aby Jose Koilparambil in Bengaluru; editing by Richard Pullin