In early October, a pilot shipment of 3,000 dmt was made to POSCO.
SAL DE VIDA PROJECT
Sale of Northern Tenements
In early October, POSCO transferred US$257 million into the designated transaction escrow account at HSBC. These funds will be released to Galaxy upon receipt of the tenement transfer deeds by the Salta and Catamarca mining courts which is expected to be completed before the end of October. The US$23 million difference between the $280 million contracted purchase consideration and the amount already transferred into the escrow account is to satisfy a tax installment payable by Galaxy and a deferred settlement amount, in accordance with the terms of the agreement.
Strategic Partnership
The process to evaluate potential strategic partners and options for the development of Sal de Vida is now well progressed. JP Morgan Australia was appointed as financial advisor for this process in Q2, with the initial objective of structuring a transaction so that the Project is at least fully-funded through to production. The Company has so far shortlisted several potential investors, who have advanced through to the next stage of evaluation and project due diligence including site visits. Galaxy is targeting the announcement of a fully documented binding transaction before the end of 2018.
GXY Price at posting:
$2.33 Sentiment: Hold Disclosure: Held