Galan Acquires Title to Catalina Tenure in Catamarca and Salta Provinces in Argentina

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it now has 100% full ownership of the Catalina tenement that borders the Catamarca and Salta Provinces in Argentina.

Galan’s Managing Director, JP Vargas de la Vega, said: “This acquisition represents a highly significant value accretive transaction for the Company. It resolves the security of tenure in this highly prospective area favourably for the exclusive benefit of Galan and its shareholders. As there are now no competing interests, our team can advance exploration and evaluation activities at Catalina with the objective of delineating a maiden resource. Furthermore, we plan to accelerate such work and look forward to keeping our shareholders informed of our progress.”

Galan has executed the necessary agreement to successfully register its full ownership of the Catalina tenure (as issued by the Catamarca and Salta authorities). This outcome is similar to that experienced by POSCO with their tenure in the Hombre Muerto salt flat. There is a long-standing political border dispute (over 100 years) between Salta and Catamarca, that includes the northern part of the Salar del Hombre Muerto, which does not have a foreseeable resolution. Over time, both respective provincial mining authorities have claimed the right on the disputed area and have been issuing mining rights that overlap over the same area. For clarity, Galan’s Catalina tenure covers Catalina, Rana de Sal II, Rana de Sal III, Pucara del Salar and Deceo I.

Catalina is located in a disputed area between Salta and Catamarca without final definition, therefore the ownership of the area will be disputed by Salta up until the Federal Congress takes a final decision. It is not expected that such a resolution will eventuate in the foreseeable near future.

However, following on from negotiations with the Salta private owner, an agreement has been reached whereby the Company will own 100% of the Catalina project, both in Salta and Catamarca, upon the issue of 9,756,098 fully paid ordinary shares in the capital of Galan. The uncertainty around the private ownership and potential mine development of the tenure has now been resolved through this important acquisition.

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