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Glencore Deal Validates Galan Lithium’s Chloride Concentrate Strategy, Exec Says
“It’s the last leg of the things that we need as a company ... to show that the lithium chloride strategy is a valid one,” said Galan Lithium Managing Director Juan Pablo Vargas de la Vega.
Following its recent financing agreement with mining giant Glencore (LSE:GLEN,OTC Pink:GLCNF), Galan Lithium (ASX:GLN,FWB:9CH) is now fully funded to complete construction of its Hombre Muerto West (HMW) project in Argentina and become the next lithium producer in the Lithium Triangle, according to Managing Director Juan Pablo Vargas de la Vega.
“To date, Galan (has) directly invested more than $20 million (in HMW), and the investment or financing solution from Glencore will allow us to pretty much complete the project,” de la Vega said.
“More importantly, this cements Galan’s strategy to produce lithium chloride concentrate. Everyone else in the Lithium Triangle is producing or going to be producing lithium carbonate. So the fact that Glencore has partnered with us to buy the chloride concentrate … shows that the lithium chloride concentrate strategy is a valid one.”
Galan’s five year offtake agreement with Glencore allows Galan to sell its technical-grade lithium chloride product from the HMW project to Glencore without having to secure an export license for its lithium chloride. Glencore will toll treat the lithium chloride into lithium carbonate for sale and export from Argentina.
De la Vega added that this important milestone also firms up the company’s plans for Phase 2 production at HMW. “We can now look into larger production from 5,000 tonnes to up to 21,000 tonnes per year … that we believe we can also place within the Argentine market as a feedstock of lithium carbonate plants within Argentina,” he said, noting that projections indicate there will be 10 new lithium carbonate processing plants in the country by 2026.
Watch the full interview with Galan Lithium Managing Director Juan Pablo Vargas de la Vaga above.
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