In a AU$600,000 deal, Galaxy Resources has acquired more tenements for its Mt Cattlin lithium project in Western Australia.
The transaction rang up a AU$600,000 price tag for Galaxy, with the payment consisting of 50 percent cash and 50 percent shares in the company. As Kingston is shifting its focus towards its Misima gold project in New Guinea, freshly acquired by the company last year, the lithium tenements were “no longer a priority” for Kingston. The proceeds of the transaction will also be going towards drilling at Misima.
“Last November’s acquisition of the Misima gold project signalled a redirection of management focus towards this outstanding opportunity for shareholders,” Kingston managing director Andrew Corbett said in a statement. “As a result, a strategic review of the lithium portfolio was undertaken to determine how to extract maximum value from those assets.”
Kingston is currently reviewing strategic options for its lithium holdings in the Northern Territory, where the company has a 400km2 tenement package, while stating that ongoing drilling at Misima is progressing well. The company currently owns 49 percent of Misima and is earning in to 70 percent; Kingston’s joint-venture partner is PPC, owned by JX Nippon Metals and Mining and Mitsui Mining and Smelting.
Galaxy’s Mt Cattlin spodumene project is currently mining pegmatite ore, which is processed on site to produce a spodumene concentrate and tantalum by-product. At full capacity, the ore can be processed at 1.6 million tonnes per annum with lithium oxide concentrate production of 200 kt per year.
The Mt Cattlin mine is part of several tenements owned by Galaxy, which contain the majority of the spodumene resource found by the company to date.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.