With Galan Lithium’s phase one pond inventories now sitting at 3200 tonnes of lithium carbonate equivalent (LCE) – up 15 per cent from last month – and its fourth and fifth ponds nearing completion, the company has continued to make strong inroads at its Hombre Muerto West (HMW) lithium brine project in the Catamarca region of Argentina as it continues to push forward with finance and offtake agreements.
Management has today confirmed that lining to be used to complete its half-filled fourth pond has arrived at the site and earthworks for the fifth pond are 80 per cent finished. It comes after the recent connection of new pipe works from the central northern section of the HMW project boosted pond flow by as much as 50 per cent.
Once work has finished on the ponds, it will mark the end of phase one and the project will then have the capacity to support a sufficient total inventory of LCE capable of producing 5400 tonnes of lithium concentrate per year.
Encouragingly, the permitting process for phase two of the project – which is targeting the production of 21,000 tonnes of lithium concentrate annually – is making steady progress. According to the company, securing those permits is vital for the ongoing development of both its HMW and Candelas projects and its applications are strongly supported by the Catamarca Government.
Although Galan is yet to secure financing and an offtake agreement for the completion of phase one, it says it has now successfully shortlisted potential partners and financiers and believes it is now moving closer to finalising a definitive sales agreement.
Notably, the company's ability to export lithium chloride concentrate, which is used as a direct feedstock for the manufacture of increasingly popular ferro-phosphate batteries, has expanded its financing options, including the pursuit of non-dilutive alternatives.
On the corporate front, Galan has also confirmed it will not entertain a bid lobbed on it in July and aimed at buying its Argentinian assets. The company last week confirmed it had received what it described as an “unsolicited, conditional, non-binding, indicative and highly opportunistic” approach from Puerto Rico-based company Energy Exploration Technologies, but today confirmed the proposal was now buried.
Galan is tantalisingly close to completing the initial construction phase at its HMW project, with export licences due to be issued shortly and offtake and financing options reportedly getting closer by the day.
An announcement that confirms any or all three of these critical steps is likely to be well-noted by ASX punters for a project that appears to have genuine significance.
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