From the Financial Review 28th August:...

From the Financial Review 28th August:

https://www.copyright link/business/mining/orocobre-to-grow-lithium-production-20180828-h14lj4


Meanwhile, shares in Galaxy Resources were close to 6 per cent higher on Tuesday, after the company's plan to sell South American lithium tenements to Korean giant POSCO had become binding, and would generate $US280 million for Galaxy.
Canaccord Genuity analyst Reg Spencer said the sale was a significant de-risking event for Galaxy, and when combined with cashflow from the company's lithium mine in Western Australia, should ensure it can fund the $US474 million construction of its Sal De Vida lithium brines project without needing to raise further funds.
The latter point is significant, given more than 18 per cent of Galaxy's register is sold short, with much of those positions betting the company will need to conduct a dilutive equity raising to fund Sal De Vida.
"Furthermore, we note that the ongoing process for finalising potential strategic partnerships for the (Sal De Vida) project could see further cash injections assuming this involves an equity sell down in the asset," said Mr Spencer in a note.

"Assuming a 15 per cent sell down at an implied project valuation in line with our net present value ($US609 million), and combined with the POSCO sale proceeds and existing cash, and Mt Cattlin cashflow, Galaxy's market capitalisation could potentially be 50 per cent cash backed by end 2018."


I Don't necessarily agree with the assumption re equity selldown, but it is certainly a possibility.

Either way it's a pretty good way to be.