- Galan Lithium (GLN) will acquire the remaining 20 per cent interest in the Greenbushes South lithium project from its joint venture partner Lithium Australia (LIT)
- At completion, Galan will be the sole owner of the Greenbushes South project and the current joint venture arrangement will terminate
- Galan will pay Lithium Australia $2 million cash and issue $1 million worth of GLN shares
- In return, LIT has the first right to negotiate an offtake agreement with the company in respect of 20 per cent of Galan’s share of lithium product from the tenements
- Shares in Galan are up 0.42 per cent, trading at $1.21 at 1:04 pm AEDT
Galan Lithium (GLN) will acquire the remaining 20 per cent interest in the Greenbushes South lithium project from joint venture partner Lithium Australia (LIT).
At completion, Galan will hold a sole interest in the project which comprises four granted exploration licences, one pending exploration licence and seven prospecting licences.
For the remaining interest, Galan will pay Lithium Australia, a fellow ASX-listed material stock, $2 million in cash as well as $1 million worth of GLN shares.
In return, Lithium Australia has the first right to negotiate an offtake agreement with Galan in respect of 20 per cent of Galan’s share of lithium product from the tenements.
GLN Managing Director JP Vargas de la Vega said the acquisition gives Galan “total control of its destiny” with full ownership of its lithium projects in Argentina and Australia.
“We are delighted to acquire full ownership of this highly prospective project in one of the world’s most renowned lithium districts,” he said.
“We have the necessary personnel in place to undertake the pending exploration programs and workload at Greenbushes South and are extremely excited with what is to come there.”
On completion of the transaction, the joint venture will terminate.
The Greenbushes South Project is currently the largest hard-rock lithium mine in the world and has been in production since 1983.
Shares in Galan were up 0.42 per cent, trading at $1.21 at 1:04 pm AEDT.