Key Agreement Details
Galan Lithium Limited has announced a partnership with Glencore, a leading global diversified natural resource company, for its Hombre Muerto West (HMW) Lithium Project. The binding agreement includes:
- Offtake of lithium chloride and/or lithium carbonate from Phase 1 production at HMW, as detailed in the DFS ASX release dated 3 July 2023.
- A Financing Prepayment Facility offered by Glencore, ranging between US$70 to US$100 million, subject to meeting certain conditions.
- The offtake agreement notably does not require Galan to secure an export licence for lithium chloride.
Strategic Implications
- This agreement validates Galan’s strategy for low-cost, low-risk lithium chloride development, positioning it to become a future lithium producer in Argentina.
- Discussions are ongoing and progressing for the larger Phase 2 HMW development, as outlined in the DFS ASX release on 3 October 2023.
Project Development and Production Timeline
- Construction of Phase 1 HMW commenced in September 2023, with the project on track for its first pond fill in Q1-2024.
- Production commencement is forecasted for the first half of 2025.
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