Galaxy Resources Announces Quarterly Report Highlighting the Mt Cattlin Project

Galaxy Resources (ASX:GXY) announced a Quarterly Report highlighting the Mt Cattlin Project located in Western Australia.
As quoted in the press release:

Significant events during the quarter:

• All outstanding historical debt fully settled.
• Partial discounted buyback of convertible bonds, with remaining balance settled from proceeds of new 3 year facility with OCP
• Sales and Distribution agreement signed with Mitsubishi for 100% of Spodumene concentrate sales from Mt
• Independent review of Mt Cattlin completed by Entech Mining
• Sal De Vida full permitting renewed through to construction from both Salta and Catamarca provinces.
• New president elected in Argentina, major policy changes immediately introduced.

Project Development
As a result of the many positive macroeconomic and policy changes that have been recently instigated in the country at both national and provincial levels, Galaxy will now be undertaking an extensive review exercise on the original Definitive Feasibility Study for its Sal de Vida Project, in particular many of the financial assumptions contained therein, as it is expected that the recent policy changes will have an overall favorable impact on the project economics.
The Company will now also be taking steps to build up its owner’s team, to assemble a group of key professionals with core competencies in multiple disciplines including, among others – engineering, processing, technology, operations and logistics – which will be taking the Sal De Vida Project to the next stage of development through to construction. Galaxy will be bringing on key members to that team, who are industry veterans with decades of experience in building and operating similar brine projects in South America.
During the quarter, Galaxy reported that GMM had completed an Independent Review of the Mt Cattlin open pit financial model. The review was conducted by Entech Pty Ltd and commissioned by GMM.
During the period, it was also reported that GMM had announced it had signed a Sales & Distribution Agreement with Mitsubishi Corporation for up to 100% of the lithium bearing spodumene concentrate which will be produced from the Mt Cattlin Project.
Mitsubishi is one of the largest traders of lithium products in the world, spanning the entire value chain. This agreement marks a major milestone being achieved in the run-up to the recommencement of production at Mt Cattlin by the end of March 2016. With Mitsubishi’s top tier status as an international trading house with specialist knowledge of the lithium supply chain, it represents an important recognition of the Mt Cattlin Project as a high quality source of near-term lithium supply to the market.
Pursuant to the terms as announced on 9th June 2015, the partnership on Mt Cattlin is subject to a A$25 million earn-in by GMM for a 50% equity interest in the Project and will see Galaxy receiving no less than A$6 million per annum in the first three years after commencement of production, as well as a 50% share of the operating cash flows.