(Reuters) - Lithium-focused explorer Argosy Minerals Ltd <AGY.AX> 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 <LI3.AX>, 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)
