PERTH, Australia, Sept. 7, 2015 /CNW Telbec/ -
- Definitive Agreement executed with General Mining Corporation
- Agreement terms to be implemented following shareholder approval at General Mining Corporation EGM on 9th September 2015
- Mt Cattlin scheduled to restart production by the end of 1st Quarter 2016
- Work on the Definitive Feasibility Study for James Bay to also begin in 2016
Galaxy Resources Ltd (ASX: GXY) ("Galaxy") ("the Company") is pleased to announce that it has executed the final definitive documentation with General Mining Corporation ("GMM") regarding the partnership to restart and operate the Mt Cattlin spodumene and tantalum mine in Ravensthorpe, WA. The Agreement will be implemented immediately following GMM's EGM, which is scheduled for Wednesday 9th September 2015.
For Galaxy, this partnership with GMM will see the restart of Mt Cattlin back into operation after over two years on care and maintenance. Production is scheduled to recommence at the end of the first quarter in 2016. Pursuant to the terms as announced on 9th June 2015, the partnership is subject to a A$25 million earn-in by GMM for a 50% equity interest in the Mt Cattlin and will see Galaxy receiving no less than A$6 million per annum in the three years after the commencement of production, as well as a 50% share of the operating cash flows from Mt Cattlin.
In preparation for the restart, GMM has been conducting ongoing work on Mt Cattlin.
- Test work on upgraded lithium recovery and mica extraction circuits are nearing completion
- Refurbishment works on the existing plant will commence next month, with construction of additional new modules following there after
- Planning is underway for resource extension drilling, following inquiries from major buyers of lithium concentrate regarding the potential for expansion of production capacity at Mt Cattlin
In addition to spodumene and tantalum production from Mt Cattlin, GMM is also exploring ways to enhance the value of the in-situ resource via the separation of saleable mica, feldspar and silica products.
About Galaxy (ASX: GXY)
Galaxy Resources Ltd ("Galaxy") is an Australian-based global lithium company with lithium production facilities, hard rock mines and brine assets in Australia, China, Canada and Argentina.
Galaxy owns the Mt Cattlin (100%) spodumene project near Ravensthorpe in Western Australia and the James Bay (100%) lithium pegmatite project in Quebec, Canada.
Galaxy is also advancing plans to develop the Sal de Vida (96%) lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a future low cost brine mine and lithium carbonate processing facility.
Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential cathode material for long life lithium-ion batteries used to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
Caution Regarding Forward Looking Information.
This document contains forward looking statements concerning Galaxy.
Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.
Forward looking statements in this document are based on Galaxy's beliefs, opinions and estimates of Galaxy as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
Not For Release in US
This announcement has been prepared for publication in Australia and may not be released in the U.S. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements.
SOURCE Galaxy Resources Limited
For further information: Corporate: Nick Rowley, Director - Corporate Development, +61 (8) 9215 1700, [email protected]