Overview
Argentina isn’t any stranger to lithium mining. The South American nation is one in every of three encompassed within the prolific Lithium Triangle, a area that holds greater than half of the world’s lithium deposits. Argentina ranks third on the planet by way of lithium reserves at 2.7 million metric tons (MT), concentrating lithium operations within the provinces of Jujuy, Salta and Catamarca.
Amidst electrification and decarbonization, analysts have forecasted a worldwide provide deficit of 89,000 tons of lithium carbonate equal (LCE) in 2023 and the Argentinian authorities goals to double down on lithium to satisfy the growing demand. Argentina has dedicated to $7 billion value of funding for lithium manufacturing with sturdy development projected for exports at $1.1 billion in 2023.
Galan Lithium (ASX:GLN,FSX:9CH) is an Australia-based worldwide mining growth firm targeted on its high-quality lithium brine initiatives in Argentina – Hombre Muerto West and Candelas. The corporate additionally holds a extremely potential lithium undertaking in Australia – Greenbushes South.
The corporate’s flagship Hombre Muerto West (HMW) undertaking hosts a few of Argentina’s highest grade and lowest impurity ranges with a list of 8.6 million tons (Mt) contained LCE @ 859 mg/L lithium, with 4.7 Mt contained LCE @ 866 mg/L Li within the measured class. The 100-percent-owned property additionally leverages shut proximity to Livent Company’s El Fenix operation and Allkem’s Sal de Vida initiatives.
Galan has signed a industrial settlement with the Catamarca Authorities supporting the grant of permits to allow the commercialisation of lithium chloride focus from HMW to be offered regionally or exported internationally.
In August 2024, Galan entered right into a memorandum of understanding with Chengdu Chemphys Chemical Trade Co. for a prepayment offtake settlement pertaining to the HMW undertaking. As soon as a definitive settlement is executed, Chemphys will buy a complete of 23,000 tonnes lithium carbonate equal, as a lithium chloride product, over the primary 5 years of manufacturing from Part 1 of the HMW undertaking. Chemphys will even present Galan with a US$40 million offtake prepayment facility to facilitate the continued growth of Part 1 of the HMW undertaking.
Catamarca Governor Raúl Jalil and Galan Lithium Managing Director Juan Pablo Vargas de la Vega in Catamarca.
Galan’s secondary Candelas undertaking includes a large valley-filled channel with a possible indicated presence of considerably high-volume brine traits. The undertaking’s maiden useful resource estimates stand upwards of 685 kilotons (kt) LCE, primarily based on surveying from October 2019, and exhibit distinctive discovery alternatives throughout this underexplored asset. Candelas has been rolled into Part 4 of Galan’s focused enlargement plans, in direction of 60 ktpa LCE manufacturing by 2030.
Galan’s 100-percent-owned Greenbushes South Undertaking is positioned in Western Australia and boasts advantageous positioning 3 kilometers south of the prolific Greenbushes lithium mine owned by Talison, Tianqi, IGO and Albermarle. Drilling of the primary goal was accomplished in July 2023. Galan is at present creating land entry agreements for future drilling campaigns at Greenbushes South. An exploration license has been granted to the corporate for an extra key tenement, E70/4629 focusing on lithium-bearing pegmatites for 5 years to February 2029. The tenement is roughly 260 kilometres south of Perth, the capital of Western Australia, and fewer than 30 kilometres south of the Greenbushes pegmatite on the Greenbushes Mine.
In 2023, Galan entered into an unique binding settlement with Redstone Sources to amass one hundred pc of the Camaro-Taiga-Hellcat property blocks from Infinity Stone Ventures (CSE:GEMS,GEMSF,FSE:B2I). The belongings are positioned within the world-class James Bay Lithium Province in Quebec, collectively masking 5,187 hectares. The three way partnership additionally contains an possibility to amass one hundred pc of the PAK East and PAK Southeast Lithium Undertaking, spanning 1,415 hectares in Ontario’s Electrical Avenue close to Frontier Lithium’s PAK Lithium Undertaking.
Galan has a extremely skilled administration workforce with over a century {of professional} experience within the useful resource, finance and power sectors. This results-oriented board and their vested curiosity within the firm’s success prime Galan for distinctive discovery potential and superior growth of its high-quality initiatives.
Firm Highlights
- Galan Lithium is an ASX-listed firm creating lithium brine initiatives inside South America’s lithium triangle on the Hombre Muerto salar in Argentina.
- The corporate has two high-quality initiatives within the works: its flagship Hombre Muerto West (HMW) and the Candelas lithium undertaking, each in Argentina. The 2 initiatives mixed deliver the corporate’s present complete mineral useful resource estimate to eight.6 million tons lithium carbonate equal @ 859 mg/L lithium.
- HMW leverages advantageous positioning close to notable mining operations, together with Livent Company’s El Felix undertaking and hosts distinctive high-grade lithium and low impurity sources.
- The HMW Part 1 (5.4 ktpa LCE) execution plan is progressing properly with the supply of the primary evaporation-ready pond anticipated in 2024, and manufacturing in H1 2025.
- The HMW Part 2 definitive feasibility research (DFS) delivers compelling economics with 21 kilo-tons each year (ktpa) lithium carbonate equal (LCE) operation at HMW, focusing on a high-quality, 6 p.c concentrated lithium chloride product (equal to 12.9 p.c lithium oxide or 31.9 p.c LCE) in 2026.
- Galan has signed a industrial settlement with the Catamarca Authorities enabling the commercialisation of lithium chloride focus from HMW to be offered regionally or exported internationally.
- Galan is transitioning into a serious lithium undertaking developer and stays dedicated to conducting fast-tracked lithium growth in its prolific initiatives with a goal manufacturing of 60 ktpa LCE from HMW and Candelas by 2030.
Key Tasks
Hombre Muerto West Undertaking
The 100-percent-owned Hombre Muerto West undertaking is a big land property that sits on the west coast of the Hombre Muerto salar in Argentina, the second-best salar on the planet for the manufacturing of lithium from brines. The property additionally leverages strategic positioning adjoining to notable opponents like Livent to the east.
Galan has elevated HMW’s mineral useful resource to eight.6 Mt contained LCE @ 859 mg/L lithium (beforehand 7.3 Mt LCE @852 mg/L lithium), one of many highest grade useful resource estimates declared in Argentina. HMW’s measured useful resource is now at 4.7 Mt contained LCE @ 866mg/L lithium. Inclusion of the Catalina tenure provides ~1.3 Mt LCE to the HMW useful resource.
The pilot plant at HMW has validated the manufacturing of lithium chlorine focus, including reagents to eradicate impurities, and producing a focus at 6 p.c lithium. The plant includes pre-concentration ponds, a lime plant, a filter press and focus ponds.
Pilot Plant at HMW
Development for Part I has already commenced for five.4 ktpa LCE manufacturing at HMW, and goals to ship lithium chloride manufacturing in H1 2025. The fourth long-term pumping check (PBRS-03-23) outcomes at HMW file an excellent lithium imply grade of 981 mg/L – the best reported grade from a manufacturing properly within the Hombre Muerto Salar.
In April 2024, Galan introduced 33 p.c undertaking completion with pond development at 45 p.c and undertaking execution is advancing as deliberate.
A definitive feasibility research (DFS) for part 2 reveals a 20.85 ktpa LCE operation at HMW, focusing on high-quality, 6 p.c concentrated lithium chloride product (equal to 12.9 p.c lithium oxide or 31.9 p.c LCE) in 2026. The DFS additionally indicated part 2 will ship a post-tax NPV (8 p.c) of US$2 billion, IRR of 43 p.c and free money move of US$236 million per 12 months. Part 2 offers an distinctive basis for vital financial upside in phases 3 and 4, focusing on 60 ktpa LCE manufacturing by 2030.
The corporate has signed a binding time period sheet with a completely owned subsidiary of Glencore for offtake of as much as one hundred pc of its premium lithium chloride focus from HMW, and the provide to offer or facilitate a secured financing prepayment facility for US$70 to US$100 million, topic to circumstances precedent being met.
Galan additionally entered right into a memorandum of understanding with Chengdu Chemphys Chemical Trade Co. for a prepayment offtake settlement. As soon as a definitive settlement is executed, Chemphys will buy a complete of 23,000 tonnes lithium carbonate equal, as a lithium chloride product, over the primary 5 years of manufacturing from Part 1 of the HMW undertaking. Chemphys will even present Galan with a US$40 million offtake prepayment facility to facilitate the continued growth of the HMW undertaking.
Galan is focusing on first-phase HMW lithium focus manufacturing in H1 2025
Galan now has one hundred pc full possession of the Catalina tenement that borders the Catamarca and Salta Provinces in Argentina. The newly secured Catalina tenure has a powerful potential to considerably add to the present HMW useful resource. The tenure additionally covers the Catalina, Rana de Sal II, Rana de Sal III, Pucara del Salar, Deseo I and Deceo II tenements.
Greenbushes South Lithium Undertaking
The 100-percent-owned Greenbushes South lithium undertaking is positioned close to Perth, Western Australia, and is three kilometers south of the world-class Greenbushes lithium mine, managed by Talison Lithium. The Greenbushes South tenements might be discovered alongside the Donnybrook-Bridgetown Shear Zone geologic construction, which hosts the lithium-bearing pegmatites on the Greenbushes Lithium Mine.
Greenbushes South covers almost 315 sq. kilometers, and hosts elevated pathfinder parts with well-defined anomalies adjoining to the property.
Administration Staff
Richard Homsany – Non-executive Chairman
Richard Homsany is an skilled company lawyer and has intensive board and operational expertise within the sources and power sectors. He’s the chief chairman of ASX-listed uranium exploration and growth firm Toro Vitality Restricted, government vice-president of Australia of TSX-listed uranium exploration firm Mega Uranium and the principal of Cardinals Attorneys and Consultants, a boutique company and power & sources legislation agency. He’s additionally the chairman of the Well being Insurance coverage Fund of Australia (HIF) and listed Redstone Sources and Central Iron Ore and is a non-executive director of Brookside Vitality Homsany’s previous profession contains time working on the Minera Alumbrera Copper and Gold mine positioned within the Catamarca Province, northwest Argentina.
Juan Pablo (‘JP’) Vargas de la Vega – Founder and Managing Director
Juan Pablo Vargas de la Vega is a Chilean/Australian mineral trade skilled with 20 years of broad expertise in ASX mining corporations, stockbroking and personal fairness companies. JP based Galan in late 2017. He has been a specialist lithium analyst in Australia, has additionally operated a non-public copper enterprise in Chile and labored for BHP, Rio Tinto and Codelco.
Daniel Jimenez – Non-executive Director
Daniel Jimenez is a civil and industrial engineer and has labored for a world chief within the lithium trade, Sociedad Química y Minera de Chile, for over 28 years. He was the vice-president of gross sales of lithium, iodine and industrial chemical compounds the place he formulated the industrial technique and advertising of SQM’s industrial merchandise and was liable for over US$900 million value of estimated gross sales in 2018.
Terry Gardiner – Non-executive Director
Terry Gardiner has 25 years’ expertise in capital markets, stockbroking and derivatives buying and selling. Previous to that, he had a few years of buying and selling in equities and derivatives for his household accounts. He’s at present a director of boutique stockbroking agency Barclay Wells, a non-executive director of Cazaly Sources, and non-executive chairman of Charger Metals NL. He additionally holds non-executive positions with different ASX-listed entities.
María Claudia Pohl Ibáñez – Non-executive Director
María Claudia Pohl Ibáñez is an industrial civil industrial engineer with intensive expertise within the lithium manufacturing trade. Till just lately, she labored for world chief within the lithium trade Sociedad Química y Minera de Chile (NYSE:SQM, Santiago Inventory Change:SQM-A, SQM-B) for 23 years, primarily based in Santiago, Chile. Throughout her time at SQM, she held quite a few senior management roles together with overseeing lithium planning and research. Ibáñez brings vital lithium undertaking analysis and operational expertise while becoming a member of the board at a vital juncture in Galan’s journey to changing into a big South American lithium producer. Since leaving SQM in late 2021, Ibáñez has been managing associate and basic supervisor of Chile-based Advert-Infinitum, a course of engineering consultancy, with a selected concentrate on lithium brine initiatives below research and growth, and the related undertaking evaluations.
Ross Dinsdale – Chief Monetary Officer
Ross Dinsdale has 18 years of intensive expertise throughout capital markets, fairness analysis, funding banking and government roles within the pure sources sector. He has held positions with Goldman Sachs, Azure Capital and extra just lately he acted as CFO for Mallee Sources. He’s a CFA constitution holder, has a Bachelor of Commerce and holds a Graduate Diploma in Utilized Finance.
