Galan Lithium (ASX:GLN) receives green light to move ahead with Hombre Muerto West construction

• Galan Lithium (GLN) receives full phase one construction permits for a 5.4ktpa LCE production plant at its Hombre Muerto West (HMW) lithium brine project in Argentina
• The permits are inclusive of ponds, a plant, an onsite laboratory, a 200-man camp, power, and other necessary infrastructure, including six additional production wells
• Construction is taking place in two phases as part of a DFS, which is focused on producing a lithium chloride concentrate
• The second phase, set to address achieving a complete 20ktpa LCE production rate, includes optimisation work scheduled for September
• GLN shares are up 3.53 per cent, trading at 80.8 cents at 2:33 pm AEST

Galan Lithium (GLN) has been granted full phase one construction permits for a 5.4 thousand tonne per annum (ktpa) LCE production plant at its Hombre Muerto West (HMW) lithium brine project in Argentina.

The issuance of permits from the Catamarca Mines Department Minister signifies the green light for full construction to commence, with the goal of achieving lithium chloride production in the first half of 2025.

The company’s permits encompass ponds, a plant, an onsite laboratory, a 200-man camp, power, and other necessary infrastructure, including six additional production wells.

Construction will unfold in two phases within a definitive feasibility study (DFS). The initial phase concentrates on producing a lithium chloride concentrate, with engineering and orders for long lead items on track to enable a production rate of 5.4ktpa LCE.

The second phase encompasses optimisation efforts, set to be unveiled in September, addressing a complete 20ktpa LCE production rate.

“This is a major development in the history of Galan and we are proud to be sharing this moment with the Government of the Catamarca Province in Argentina in a major step towards the production of a premium quality lithium chloride product from the HMW Project,” GLN Managing Director Juan Pablo Vargas de la Vega said.

Galan’s permits encompass its full phase one DFS production rate of 5.4ktpa LCE and also cover its constructed carbonate plant, which will utilize lithium concentration feed from the existing ponds already constructed.

The company anticipates initiating its phase one pond constructions within two weeks, while the phase two DFS remains on track for September 2023.

GLN shares were up 3.53 per cent, trading at 80.8 cents at 2:33 pm AEST.