Galan Lithium Limited (ASX: GLN) Announces Strategic Agreement with Catamarca Government for Lithium Chloride Commercialisation
Perth, WA – April 22, 2024 – Galan Lithium Limited (ASX: GLN), an ASX listed lithium exploration and development company, is thrilled to announce a pivotal commercial agreement signed with the Government of Catamarca, Argentina. This significant partnership is set to bolster the commercialisation of high-grade lithium chloride concentrate, marking a strategic milestone in Galan's expansion and operational capabilities in Argentina’s lithium-rich regions.
Under this groundbreaking agreement, which was formally signed on April 19, 2024, by the Governor of Catamarca, Galan will receive essential permits allowing for the local sale and international export of lithium chloride concentrate. This aligns with the company’s long-term strategy to enhance its market reach and secure more favorable terms for lithium sales and funding opportunities.
Key Highlights of the Agreement:
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Enhanced Royalty and Financial Terms: The agreement includes an increased royalty rate of 7% along with potential for advanced payments, echoing successful frameworks from Australia’s lithium sector.
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Commitment to Downstream Processing: Post four years from the date of agreement, Galan will explore additional downstream processing opportunities for lithium products such as lithium carbonate and lithium hydroxide, outside the Hombre Muerto salar, with a priority given to collaboration with the Catamarca government.
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Tier One Project Advancement: The Hombre Muerto West (HMW) project, known for its low-cost, premium-grade lithium resources, is on track to commence its first production phase in the first half of 2025.
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Strategic Expansion and Local Collaboration: The deal further solidifies Galan's relationship with local government and communities, ensuring mutual benefits and sustainable development within the region.
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.
We are proud of our long term relationship with the Government of Catamarca and local communities in Argentina. The agreement reflects the mutual respect and trust we have established and the commitment we all have to maximising the short, medium and long term economic opportunities at the HMW Project.”
Forward-Looking Initiatives:
The HMW project, structured in four progressive production phases, is set to escalate its output significantly by 2030, with a strategic aim to position Galan as a leading lithium producer in Argentina. The initial phase is already underway, targeting an annual production of 5.4ktpa LCE of lithium chloride concentrate by early 2025.
This agreement not only demonstrates Galan’s dedication to fostering strong governmental and community ties but also significantly de-risks its operational strategy, paving the way for the rapid development and expansion of its lithium projects
About us:
Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan’s flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto Salar in Argentina, within South America’s ‘lithium triangle’. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operation (Arcadium Lithium, formerly Livent Corporation), Sal de Vida (Arcadium Lithium, formerly Allkem) and Sal de Oro (POSCO) lithium projects. Galan is also exploring at Greenbushes South in Western Australia, just south of the Tier 1 Greenbushes Lithium Mine.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
