Argosy (ASX:AGY) share price plummets 7% despite positive update

The Argosy (ASX: AGY) share price is plummeting today despite a positive update. We take a look at the details.

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A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

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The Argosy Minerals Limited (ASX: AGY) share price has plummeted in early afternoon trade. This comes despite a positive company announcement to the ASX market this morning.

At the time of writing, the Argosy share price is trading down 7.89% at an intraday low of 17.5 cents.

Argosy Minerals is a mining and exploration company with a 77.5% interest in the Rincon Lithium Project in Salta Province, Argentina. The company also operates the Tonopah Lithium Project in Nevada, USA.

What did Argosy announce?

In today’s release, Argosy revealed that Salta Province’s government plans to develop a mining logistics node to support mining and energy activities in the Puma region. The node will be located next to Argosy’s Rincon project.

Argosy said the facility would act as a self-sustaining industrial service site to benefit mining workers who operate close by. Infrastructure will include an airport, industrial area, transfer facility, accommodation, service station, commercial premises, and health centre.

The government granted 403ha of land to provincial state company Remsa, to help develop the site. Argosy also noted that the planned location adjoins South America’s second-largest photovoltaic plant facility.

What did the managing director say?

Argosy managing director Jerko Zuvela welcomed the news, saying:

The planned facility will provide substantial benefits as we continue development of our Rincon Lithium Project, in addition to significant potential cost savings given the planned site location and services being provided.

Argosy will continue to cooperate with the Salta Province government to assist with this development and maintain our strong relationship with the local community.

Argosy share price snapshot

The Argosy share price has performed well in the past 3 months, surging 260% and reaching a 52-week high of 21.5 cents in January.

Based on the current share price, Argosy commands a market capitalisation of $178.4 million.

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