Galan Reveal Compelling PEA for their Hombre Muerto Project - Net Present Value of $1.3 Billion

JP Vargas de la Vega talks to the Market Herald about the recent Hombre Muerto Resource Expansion

Galan Lithium - Capital Raising Update 

Investor Updates with JP - Galan Lithium - Battery Day, September 2020

New World Metals Conference - 2019

• Galan Lithium (GLN) has entered a trading halt as it gets ready to announce a new capital raising ventur
• The company will release the details of the raise no later than Monday, October 12, the last day the trading halt is in effect
• Galan ended the 2020 financial year with a $3.6 million comprehensive loss
• It also had around $1.6 million in the bank at the end of FY20, slightly down on the $2.6 million it had at the end of FY19
• Shares in Galan Lithium last traded for 15 cents each

Mineral exploration company Galan Lithium (GLN) has entered a trading halt as it gets ready to announce a new capital raising venture.

In a statement to the ASX, the company said it will release the details of the raise no later than Monday, October 12, the last day the trading halt remains in effect.

Galan recently released its annual report for the 2020 financial year, showing the company ended the year with an almost $3.6 million comprehensive loss.

The exploration stock burnt through $1.7 million on operating expenses over the same period and $4.2 million on investing activities, such as exploration work.

At the end of FY20, Galan had around $1.6 million in the bank, slightly down on the $2.6 million it had at the end of FY19.

The company is primarily focused on its lithium brine assets located within the South American Lithium Triangle in Argentina, including the Candelas and Hombre Muerto West projects.

Shares in Galan Lithium last traded for 15 cents each on October 7.

Galan Acquires new land parcel for Hombre Muerto West Project, Boosts lithium resource 65 per cent 

• Galan Lithium (GLN) has seen a 65 per cent jump in the lithium resource at its Hombre Muerto West project in Argentina
• The estimate now stands at over 2.3 million tonnes (Mt) lithium carbonate equivalent (LCE) at 946 milligrams per litre (mg/l) lithium
• The Hombre Muerto West (HMW) project now has the third-largest publicly disclosed lithium resource in the Hombre Muerto salt flat basin
• The company is working on a scoping study and preliminary economic assessment, which are both on track for release before the end of the year
• Further geophysical surveys are planned for early 2021 to seek out possible exploration upside
• Galan Lithium is trading 20 per cent higher for 15 cents

A new acquisition has seen the resource estimate at Galan Lithium's (GLN) Hombre Muerto West lithium project in Argentina substantially increase.

The estimate has jumped 65 per cent, now standing at over 2.3 million tonnes (Mt) lithium carbonate equivalent (LCE) at 946 milligrams per litre (mg/l) lithium.

New zone

The initial resource estimate had been updated in June with the acquisition of the Deceo III concession, adjacent to the Pata Pila licence area, and the resource estimate was re-classified from inferred to indicated.

The recent acquisition of the Del Condor concession and a review of specific yield
values used in the resource calculations has seen the resource estimate climb even higher.

The Hombre Muerto West (HMW) project now has the third-largest publicly disclosed lithium resource in the Hombre Muerto salt flat basin.

Galan Managing Director Juan Pablo (JP) Vargas de la Vega said the project is taking on a scope even larger than the company had envisioned.

"Being the third-largest publicly disclosed resource in the Hombre Muerto and overtaking POSCO, is an amazing milestone," JP began.

"This is something we were not even dreaming about when we first started drilling late last year." 

Galan Lithium Managing Director, JP Vargas de la Vega

"The increase from 1.4 million tonnes to 2.3 million tonnes of LCE at HMW is a huge step up for the project’s economic and technical potential," he added.

The HMW project is made up of six exploration areas, though only four are included in the mineral resource. 

The project spans 7.5 kilometres in strike, up to 2.5 kilometres in width and up to 718 metres in depth.

Next steps

The Hombre Muerto Basin is a well-known area of brine lithium with existing infrastructure and nearby mills available for processing.

The company is working on a scoping study and preliminary economic assessment for the project, which are both on track for release before the end of the year.

Further geophysical surveys are planned for early 2021 to seek out possible exploration upside.

Galan now holds combined total resources in the Hombre Muerto basin of around 3 million tonnes at 858mg/l lithium, with the possibility of a further increase.

Korean industrial giant POSCO recently acquired Hombre Muerto tenements containing 2.5 million tonnes at 732mg/l lithium from Galaxy Resources (GXY) for US$280 million (around A$382.5 million).

Galan Lithium is trading 20 per cent higher for 15 cents at 10:50 am AEDT.

SEE MORE HERE

Galan Lithium (ASX:GLN) to acquire 80pc of Greenbushes Lithium Mine 

• 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.

See Full Article Here.