Offtake agreement. Glencore will purchase technical grade lithium chloride product from Galan’s high-grade, low-impurity HMW Project in Catamarca Province, Argentina. The offtake commitment does not require Galan to have secured an export licence for its lithium chloride. Glencore will accept offtake for Galan’s lithium chloride to be toll treated into lithium carbonate for sale and export from Argentina.
The binding agreement is for a five-year period from commencement of commercial production for 100% of Galan’s Phase 1 production estimated at 5.4kt lithium carbonate equivalent (LCE) in lithium chloride concentrate per annum. The price payable by Glencore will be referenced to a mutually agreed lithium carbonate price index over a quotational period less a marketing fee, discount and penalties (if any). The agreement is renewable subject to mutual agreement between Galan and Glencore.
Financing. Galan also secured an offer from Glencore to provide or facilitate a binding proposal for the Facility to support funding of Phase 1, which is subject to certain conditions precedent being met including, amongst others, satisfactory due diligence to Glencore’s absolute discretion and draw down under the Facility will only become effective when the MOA and all transaction definitive documentation has been signed subject to Glencore’s satisfaction in its absolute discretion.
In parallel and while Galan is developing Phase 1 for maiden production at HMW in 1H 2025, the company is also advancing discussions for the development of Phase 2 at HMW.
Galan’s flagship assets comprise two 100% owned, world-class lithium brine projects, Hombre Muerto West (HMW) and Candelas, located on the Hombre Muerto salar in Argentina, within South America’s ‘lithium triangle’. HMW 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 operations (Livent Corporation) and Sal de Vida (Allkem) and Sal de Oro (POSCO) lithium projects.
Galan is also exploring at its 100% owned Greenbushes South lithium project in Western Australia, located approximately 3km south of the Tier 1 Greenbushes Lithium Mine.
Hombre Muerto West (HMW) is a ~16km by 1-5km region on the west coast of Hombre Muerto salar neighboring Livent Corp to the east. HMW currently comprises seven concessions: Pata Pila, Rana de Sal, Deceo III, Del Condor, Pucara, Catalina and Santa Barbara.
Geophysics and drilling at HMW demonstrated significant potential of a deep basin. In October 2022, the HMW Mineral Resource estimate increased 2.5 times to 5.8Mt contained LCE @ 866 mg/l Li for the larger concessions (Pata Pila, Casa del Inca and Rana de Sal). Exploration upside remains for the rest of the HMW concessions not included in the October 2022 resource estimate.