Galan Moves To 100% Ownership of Greenbushes South Lithium Project

Lithium Australia NL (ASX: LIT) (Lithium Australia or the Company) is pleased to announce that it has executed a Binding Term Sheet with Lithium Australia Limited (ASX:LIT) to acquire its remaining 20% interest in the Greenbushes South tenements and its 20% participating interest in the Greenbushes South Joint Venture. At completion, Galan will hold a 100% interest in the Greenbushes South Lithium Project which comprises four granted exploration licenses, one pending exploration license and seven prospecting licenses (Figure 1).

Highlights:

• Galan to acquire the remaining 20% of the Greenbushes South Lithium Project (‘the Project’) from Lithium Australia Limited (ASX:LIT)
• At completion, Galan will own 100% of the Project, which is located only 3 km south of the world-class Greenbushes Lithium Mine
• Joint venture partnership with LIT terminates on completion of the acquisition
• The acquisition, along with its 100% interest in E70/6264, consolidates Galan’s significant package of exploration ground in a world-class lithium district

The Greenbushes South Lithium Project (‘the Project’) is located 250 km south of Perth, in Western Australia. Covering an area of approx. 315 km², the Project was originally acquired by Lithium Australia Limited due to its predicted strike projection of the geological structure associated with the Greenbushes Lithium Mine (‘Greenbushes’).

In March 2022 airborne geophysics was flown to develop pegmatite targets for all of Galan’s tenements. Following on, in August 2022, a pegmatite associated with spodumene-bearing rocks was discovered at E70/4790. This tenement is approximately 3 km to the south of the Greenbushes mine. Further geological mapping, soil sampling and geophysical investigations are being used to determine drill targets within E70/4790. These aforementioned ground-based methods are also being applied to Galan’s other granted tenements in the region.

Greenbushes is currently the largest hard-rock lithium mine in the world and has been in production since 1983. It is operated by Talison Lithium Pty Ltd, a private company now owned by joint venture partners Tianqi Lithium Corporation / IGO Limited JV (51%) and Albemarle Corporation (49%).

Galan’s Managing Director, JP Vargas de la Vega, said: “We are delighted to acquire full ownership of this highly prospective project in one of the world’s most renowned lithium districts. We have the necessary personnel in place to undertake the pending exploration programmes and workload at Greenbushes South and are extremely excited with what is to come there. Galan is in total control of its destiny with full ownership of its lithium projects in Argentina and Australia.”

Key terms of the transaction

• Cash payment of $2,000,000;
• The issue of GLN fully paid shares to the value of A$1,000,000 to LIT, with the number of shares to be issued to be calculated based on the volume weighted average price of GLN shares traded on the ASX for the five (5) days preceding the date of completion.
• On completion, the Joint Venture will terminate.
• LIT has the first right to negotiate an offtake agreement with Galan in respect of 20% of Galan’s share of lithium product from the tenements

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