
April 21, 2024
Galan Lithium Limited (ASX:GLN) (Galan or the Company) is very pleased to announce that on Friday 19 April 2024 (Argentina time), the Catamarca Governor signed a commercial agreement in support of the grant of permits for the commercialisation of lithium chloride concentrate from the Hombre Muerto West lithium brine project (HMW). The permits will allow for the domestic sale or export of lithium chloride concentrate, Galan will however continue to endeavour to place lithium chloride concentrate locally. Galan commits to pursuing further downstream processing routes (e.g. lithium carbonate, hydroxide or other alternatives) after 4 years, in a location outside the Hombre Muerto salar. The next step in the process is the formalisation and the passing into legislation.
Highlights:
- Galan has signed a commercial agreement with the Catamarca Government in support of the grant of permits to enable the commercialisation of lithium chloride concentrate to be sold locally or exported internationally
- Galan’s ability to export lithium chloride concentrate is expected to facilitate access to a larger customer base domestically and internationally, potentially offering enhanced offtake terms and funding/prepayment opportunities
- The agreement includes an increase in the proposed royalty rate to 7% and potential advance payments. This is similar to the successful regime operating in Australia (applied to the export of spodumene concentrate, which contributed to Australia becoming the largest Lithium exporter in the world, in recent years), thereby supporting the rapid development of the HMW project
- The agreement includes a commitment by Galan, after 4 years, to pursue further downstream processing routes (e.g. lithium carbonate, lithium hydroxide or other alternatives), outside the Hombre Muerto salar, with the intent to offer priority to a collaboration with the Catamarca government agency
- The HMW Project is a Tier One project that will produce a low cost premium high grade lithium chloride (LiCl) concentrate of 6% Li, comparable to 13% Li2O or 32% Lithium Carbonate Equivalent (LCE) and remains on track for first production in H1 2025.
- The agreement also cements an important prerequisite required for the grant of Phase 2 permits (currently under application), potentially enabling the continuity of development for Phase 2 construction at the completion of Phase 1.
- Galan continues to work closely with the local Catamarca government in relation to our long term value add lithium production strategy, this agreement further significantly de-risks the strategy and provides evidence of our very strong, positive and collaborative relationship with local authorities and our community
Catamarca Governor Raúl Jalil and Galan Lithium Ltd Managing Director Juan Pablo Vargas de la Vega in Catamarca on Friday 19 April 2024
As previously announced, the HMW project is separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate (currently under construction) by H1 2025, as governed by the approved production permits. The Phase 2 DFS targets 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas. The very positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented: “Galan would firstly like to acknowledge and sincerely thank the Government of the Catamarca Province in Argentina for their continued support. We look forward to continuing to work side by side with our local communities and authorities, towards achieving mutually beneficial and sustainable outcomes for both the people of Argentina and Galan’s shareholders, through the further downstream development of lithium processing routes such as lithium carbonate, hydroxide or other alternatives, in Catamarca.
This commercial agreement is an important milestone in implementing Galan’s strategy, providing access to a larger international customer base at potentially improved sales and funding/prepayment terms. The agreement is expected to provide tangible progress towards the granting of Phase 2 permits on our journey to becoming the next lithium producer in Argentina.
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
The Conversation (0)
25 August
Galan Lithium Limited: SUCCESSFUL DUE DILIGENCE COMPLETED - $20M PLACEMENT TO PROCEED
Highlights: All conditions in relation to the $20 million placement to Clean Elements Fund have been satisfied. Due diligence undertaken by Clean Elements Fund validates the standing of Hombre Muerto West ( HMW ) as a world class lithium project, offering exceptional scale and grade. Galan is... Keep Reading...
24 August
Successful Due Diligence Ends - $20M Placement To Proceed
Galan Lithium (GLN:AU) has announced Successful Due Diligence Ends - $20m Placement To ProceedDownload the PDF here. Keep Reading...
01 August
Final At-The-Market Raise for 2025
Galan Lithium (GLN:AU) has announced Final At-The-Market Raise for 2025Download the PDF here. Keep Reading...
30 July
Quarterly Activities and Cash Flow Report
Galan Lithium (GLN:AU) has announced Quarterly Activities and Cash Flow ReportDownload the PDF here. Keep Reading...
28 July
Galan Lithium Limited: Incentive Regime for HMW Project in Argentina
Galan Lithium Limited (ASX: GLN,OTC:GLNLF) (" Galan " or " the Company ") is pleased to advise that the Comite Evaluador de Proyectos RIGI, responsible for awarding the Argentine Government's Régimen de Incentivo para Grandes Inversiones (the incentive regime for large-scale investments referred... Keep Reading...
14h
EUR Sells a Further 3.85 Million CRML Shares for US$50M (A$76M) to a US Institutional Investor
European Lithium Ltd (ASX: EUR, FRA:PF8, OTC: EULIF) (European Lithium or the Company) is pleased to announce that Critical Metals Corp. (Nasdaq: CRML) in an off-market transaction has sold a further 3.85 million CRML shares to a single US institutional investor at US$13 per share (a 12%... Keep Reading...
12 October
Successful A$4.5m Two Tranche Placement
Green Technology Metals (GT1:AU) has announced Successful A$4.5m Two Tranche PlacementDownload the PDF here. Keep Reading...
10 October
Chairman on India Trade Mission with PM
Robin Brundle joins Prime Minister on first major trade mission to IndiaMr Brundle joins 125-strong delegation of leading business representatives, academic and cultural leaders, and government ministers on UK's largest ever trade mission to IndiaTechnology Minerals Plc (LSE: TM1), the first UK... Keep Reading...
09 October
Mining the Gap: 5 Forces Shaping North America’s Lithium Supply Chain
A convergence of industry investments, government initiatives and a shifting global trade dynamic is creating an environment ripe for the development of a North American battery supply chain, with lithium playing a leading role. These trends are reshaping the region’s industrial base and opening... Keep Reading...
08 October
Saskatchewan Implements New 3 Percent Lithium Royalty, Provides Clarity to Companies
Saskatchewan has introduced a new royalty framework for lithium production, marking a major step toward supporting the province’s growing role in Canada’s critical minerals sector. The amendments to 2017 subsurface mineral royalty regulations formally establish a 3 percent Crown royalty on the... Keep Reading...
06 October
From Rock to Road: Investing in Ontario’s Looming EV Boom
The momentum around the global energy transition has underscored the critical importance of establishing secure, ethical and efficient critical mineral supply chains, leading to renewed interest in jurisdictions with the right resources but without the geopolitical baggage. And Ontario, Canada... Keep Reading...
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00