Galan Lithium on track with Pond 1 construction as Glencore progresses due diligence on its US$100m offtake agreement

HMW Pond 1 construction 85% complete
Pond 2 construction to start before the new year
Phase 1 of HMW on track to produce 5,400t LCE by H1 2025
Glencore progressing due diligence for potential US$100m offtake finance

Special Report: Pond 1 construction as part of Galan Lithium’s Hombre Muerto West (HMW) Phase 1 lithium brine development in Argentina is almost complete, with Pond 2 construction to start before the end of the year.

Galan Lithium’s (ASX:GLN) HMW project is separated into four production phases, with the initial Phase 1 DFS focused on the production of 5.4ktpa LCE by H1 2025.

The Phase 2 DFS targets 21ktpa LCE in 2026, which will be followed by Phase 3 production of 40ktpa LCE by 2028 and final Phase 4 production target of 60ktpa LCE by 2030 that will include lithium brine sourced from both HMW and Candelas.

GLN MD Juan Pablo Vargas de la Vega says HMW Phase 1 construction is tracking along as planned.

“Galan’s experienced and competent construction team are entirely focused on delivering the first HMW production phase in H1 2025 and remain enthusiastic and confident in doing so,” Vargas de la Vega says.

“The Pond 1 liner team is ready to mobilise with an expected commencement installation date in late December 2023 plus our onsite laboratory has just been commissioned for continual on-site lithium assaying as we move forward.”

GLN recently signed an offtake agreement with GLN to purchase up to 100% of the proposed lithium chloride concentrate production of Phase 1 and secure first rights to negotiate in respect of marketing and/or financing with regards to future Phase 2 expansion operations.

Glencore is undertaking due diligence of GLN’s HMW project, and if all terms are met, the deal could be worth up to a whopping US$100m on prepayment finance for the development of the brine project.

Latest movements and next steps

A whole raft of activities are planned for the remainder of 2023 and into the new year, including:

On-site laboratory commissioned for ongoing lithium assaying;
Liner crew ready to mobilise; Pond 1 installation to commence before end of year;
Fill of pond 1 expected in Q1 2024; evaporation process to commence this summer;
Pond 2 construction expected to begin before year end;
Phase 2 EIA lodged with Catamarca Government; and
Glencore technical due diligence continues.

 

This article was developed in collaboration with Galan Lithium, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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