Galan Lithium Logo

Galan Secures Agreement with Glencore for Offtake & Financing Prepayment Facility for the Hombre Muerto West (HMW) Lithium Project

The Board of Galan Lithium Limited (Galan or the Company) is very pleased to announce that it has signed a binding term sheet with a wholly owned subsidiary of Glencore plc (Glencore) global mining and trading company, for offtake for up to 100% of its premium lithium chloride concentrate from HMW (Marketing Offtake Agreement or MOA) and the offer to provide or facilitate a secured Financing Prepayment Facility (Facility) for US$70 to US$100 million, subject to conditions precedent being met.


  • Binding offtake secured from Glencore, one of the world’s largest global diversified natural resource companies, for lithium chloride and/or lithium carbonate from Phase 1 production (see DFS ASX release 3 July 2023) at HMW
  • Glencore offers to provide or facilitate a Financing Prepayment Facility for US$70 to US$100 million, subject to conditions precedent
  • Offtake with Glencore does not require an export licence
  • The agreement endorses Galan’s low-cost low-risk lithium chloride development strategy to become the next lithium producer in Argentina
  • Discussions for the larger Phase 2 (see DFS ASX release 3 October 2023) HMW development are open and well advanced
  • As previously announced Galan has commenced construction of Phase 1 HMW in September 2023 and remains on track for first pond fill in Q1-2024
  • Commencement of production remains forecast for H1 2025

OFFTAKE AGREEMENT

Glencore will purchase technical grade lithium chloride product from Galan’s high-grade, low- impurity HMW Project in Catamarca Province, Argentina. The offtake commitment does not require Galan to have secured an export licence for its lithium chloride. Glencore will accept offtake for Galan’s lithium chloride to be toll treated into lithium carbonate for sale and export from Argentina.

The binding agreement is for a five (5) year period from commencement of commercial production for 100% of Galan’s Phase 1 production estimated at 5.4kt lithium carbonate equivalent (LCE) in lithium chloride concentrate per annum. The price payable by Glencore will be referenced to a mutually agreed lithium carbonate price index over a quotational period less a marketing fee, discount and penalties (if any).

The agreement is renewable subject to mutual agreement between Galan and Glencore.

FINANCING PREPAYMENT FACILITY

Galan is also delighted to have secured an offer from Glencore to provide or facilitate a binding proposal for the Facility to support funding of Phase 1, which is subject to certain conditions precedent being met including, amongst others, satisfactory due diligence to Glencore’s absolute discretion and draw down under the Facility will only become effective when the MOA and all transaction definitive documentation has been signed subject to Glencore’s satisfaction in its absolute discretion.

Galan believes that the execution of the binding term sheet for the MOA and Facility is a validation of the exceptional quality of the HMW Project and a strong endorsement of the experienced personnel with the requisite niche expertise which Galan has secured to successfully construct and deliver a lithium brine project in Argentina. Moreover, to underscore such confidence in the growth and future of Galan and its HMW Project, Galan and Glencore have agreed that Glencore will have first right to negotiate in respect of marketing and/or financing with regards to the future expansion of the HMW Project for Phase 2.

In parallel and whilst Galan is developing Phase 1 for maiden production at HMW in 1H 2025, the Company is also advancing discussions for the development of Phase 2 at HMW.

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, said:

“We are very delighted to announce Galan’s achievement of this very significant milestone on the path towards commencing commercial production at HMW in H1 2025. The agreement with Glencore is a validation of the quality our world class project and endorses the calibre and experience of Galan’s team. Our agreement with Glencore significantly de-risks our project and we are very well poised to secure finance for Phase 1 of the HMW Project. Importantly, Glencore’s funding assistance via the prepayment facility endorses our lithium chloride concentration strategy to deliver the HMW project, and provide returns to shareholders, in a shorter time frame.

We are today closer to becoming a significant and reliable producer of lithium, and thereafter growing our production in line with the expected rise in demand. Our momentum towards maiden commercial production continually strengthens and we look forward to updating investors on our progress.

We thank and acknowledge the work of our dedicated Board and personnel to reach this critical milestone. As always, we are grateful to our community and government in Argentina for their invaluable support of our development at HMW.”


Click here for the full ASX Release

This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

GLN:AU
Galan Lithium

Galan Lithium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Galan Lithium

Galan Lithium


Keep reading...Show less
greenbushes lithium mine

Who Owns Australia's Largest Lithium Mines? (Updated 2024)

As the world’s largest lithium producer and exporter, Australia is positioned to take full advantage of growing demand.

An impressive 52 percent of the world’s lithium comes from Australia, and by 2028, the country's revenue from exporting the commodity is expected to reach a value of more than AU$22 billion. While prices for the battery metal have fallen off from recent highs, some experts believe that the green energy transition will allow lithium to maintain momentum well into the future.

Lithium is most often found in the mineral spodumene, from which it must be extracted, processed and refined. It is used in aluminium or magnesium alloys for applications such as building aircraft or trains, serving as a strengthening and lightening agent.

Keep reading...Show less

Albemarle Corporation to Present at the BMO 33rd Global Metals, Mining & Critical Minerals Conference

Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity, and health, announced today that Albemarle Corporation's Chairman and CEO Kent Masters is scheduled to present at the BMO Capital Markets 2024 Investor Conference on Monday, Feb. 26, 2024 at 1:30 pm ET .

Albemarle Corp. Logo. (PRNewsFoto/Albemarle Corporation)

A webcast replay will be available following the conclusion of the event through the News and Events page on Albemarle's website at http://investors.albemarle.com .

About Albemarle
Albemarle Corporation (NYSE: ALB) leads the world in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at albemarle.com and on X (formerly known as Twitter) @AlbemarleCorp.

Albemarle regularly posts information to www.albemarle.com , including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, Securities and Exchange Commission ("SEC") filings and other information regarding the company, its businesses and the markets it serves.

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/albemarle-corporation-to-present-at-the-bmo-33rd-global-metals-mining--critical-minerals-conference-302065407.html

SOURCE Albemarle Corporation

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less
battery with glowing neon lightning symbol

Lithium Market 2023 Year-End Review

In recent years, many countries around the world have pledged to stop the sale of internal combustion engine vehicles in favor of new energy vehicles, setting deadlines from 2030 to 2040. This has all but guaranteed significant long-term demand for lithium-ion batteries, and 2022 saw the metal reach all-time price highs due to these fundamentals.

Mining companies rose to the challenge of meeting that demand, restarting operations, ramping up production significantly or increasing their refining capacity. Additionally, established lithium juniors and newcomers to the space aggressively explored for new discoveries, with some finding success and moving projects towards production.

However, tides changed in 2023 and lithium prices plummeted over the course of the year.

Keep reading...Show less
Ronin Resources

Hornby Lake Assays Confirm Presence of Fractionated Pegmatites

Eleven whole rock samples collected during the field work were sent to ALS Sudbury for analysis using the ME- MS61 package with four-acid digestion. This method analysed for 48 elements (Ag, Al, As, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, and Zr).

Keep reading...Show less
  Kali Metals Limited

More High-Grade Lithium at Higginsville Lithium District

Multiple Lithium Soil Anomalies and Rock Chips up to 5.05% Li2O

Kali Metals Limited (ASX: KM1) (“Kali” or “Company”) is pleased to announce that multiple lithium soil sampling anomalies have been reported from the initial results of the regional soil geochemical surveys at the Higginsville Lithium District. In conjunction with the soil program, further rock chip sampling and mapping fieldwork was conducted, returning high grade lithium assays across two separate project areas, Spargoville and Widgiemooltha Projects.

Keep reading...Show less
White Cliff Minerals

$4.33M Funding Secured Through WCNOE Option Underwriting Agreement

White Cliff Minerals Limited (White Cliff or the Company) is pleased to advise that it has executed an underwriting agreement (the “Underwriting”) with CPS Capital Group Pty Limited (“CPS") and its nominees to underwrite the listed WCNOE options (“WCNOE” or the “Options”). CPS will act as Lead Underwriter with the underwriting supported by other leading Australian, European & UK financial institutions.

Keep reading...Show less
Galan Lithium

Galan Lithium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×