Galan Lithium Secures Offtake and Financing Agreement with Glencore for Hombre Muerto West Project

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.

Don't forget to read more: "China to Increase Scrap Copper Imports for Sustainable Copper Production"