offtake next step

Considering they have already had interest over and above what they currently have justified in the ground, one would think it shouldn’t take too long. This announcement and the actual granting of the mining approval needs to occur this qtr so that the planned construction can begin. A lot of BIG ticks to occur shortly that will give the SP a kick a long. Interesting to see what the off take partner/s are willing to pay to secure the supply. From this we should be able to gage what this little project is worth and could be worth. Also forgot about the BFS to the processing plant in China... All happening in the next few months..... timing could not be better...



Galaxy seeks offtake deals for lithium project
KATE EMERY, The West Australian August 26, 2009, 6:39 am

Galaxy Resources has turned its attention to securing offtake agreements over its flagship lithium project after unveiling a $200 million funding deal that sent its shares up 8 per cent yesterday.

As flagged by The West Australian, Galaxy has struck a deal with China's Creat Group that will include a $130 million debt facility and a $26 million placement for 19.9 per cent of the company.

Investors responded to the news by pushing Galaxy shares 10.5¢ higher to $1.395.

Galaxy will also raise additional equity through a placement to institutional investors, expected to raise nearly $50 million.

Galaxy managing director Iggy Tan said offtake agreements over the Mt Cattlin project, which it hopes to bring into production by this time next year, would be the group's next focus.

Galaxy has already received letters of intent for up to 22,000 tonnes of lithium carbonate a year, exceeding its production target of 17,000tpa.

Galaxy is the second WA junior to do a company-making deal this week after BC Iron confirmed on Monday it had received final sign-off from joint venture partner Fortescue Metals Group over its Nullagine iron ore project.

BC shares, which slipped 2.5¢ to $1.03 yesterday in a gloomy market, are still up nearly 7 per cent since the announcement.

Also yesterday, fellow lithium hopeful Reed Resources secured $10.9 million through a placement and a share purchase plan, intended to advance its recently acquired Mount Marion lithium project as well as its Barrambie vanadium project.

Shares in Reed were 1.5¢ lower at 37.5¢.