- Galan Lithium (GLN) is set to acquire an 80 per cent interest in the Greenbushes South Lithium Project from Lithium Australia (LIT)
- To acquire the 80 per cent, Galan will issue more than 1.22 million shares and will solely fund expenditure until a preliminary feasibility study is completed
- The acquisition is expected to be complete within five business days but can be extended if both Galan and Lithium Australia agree to it
- Greenbushes lies 200 kilometres south of Perth in Western Australia and is currently the largest hard-rock lithium mine in the world
- Originally, it was mined for tin and tantalum before moving onto lithium as its main revenue source
- Galan Lithium is up 11.8 per cent on the market this morning with shares trading at 42.5 cents
Galan Lithium (GLN) is set to acquire an 80 per cent interest in the Greenbushes South Lithium Project from Lithium Australia (LIT).
To acquire the 80 per cent, Galan will issue 1,221,000 fully-paid ordinary shares to Lithium Australia and will solely fund expenditure until a preliminary feasibility study is completed.
Upon completion, both companies will contribute on a pro-rata basis and retain a two per cent net smelter royalty.
The acquisition is expected to be complete within five business days but can be extended if both Galan and Lithium Australia agree to it.
“We are delighted to acquire a significant majority stake in a highly prospective lithium project in a world-renowned lithium district and increase our existing lithium exploration ground at Greenbushes in Western Australia,” Managing Director Juan Pablo Vargas de la Vega commented.
“We have secured an outstanding exploration opportunity in Western Australia to add to our existing portfolio of assets in Argentina that have a potential production profile,” he said.
“We will proceed to exploring this tenure in a methodological step-by-step manner and progress tenement applications to grant,” he added.
Greenbushes lies 200 kilometres south of Perth in Western Australia and covers an area of 353 square kilometres.
Currently, it is the largest hard-rock lithium mine in the world and it produces a spodumene concentrate which feeds into both China and West Australian mineral conversion plants.
Earlier work by previous explorers focused more on tin and tantalum extraction before moving onto spodumene as its revenue driver.
Galan Lithium is up 11.8 per cent on the market this morning with shares trading at 42.5 cents at 10:39 am AEDT.