Galaxy Resources Limited has announced that it is on track to commission the Mt Cattlin Lithium Tantalum project by Q3 2010.
The company completed a Definitive Feasibility Study (DFS) at the end of 2008 as planned, and has been able to quickly advance the next stages of the project timeline.
According to a company statement, the “Value Engineering” phase of the project is continuing and further refinements that have the potential to reduce both capital and operating costs at the project are being made.
Once completed, the company will then move to tender and select an EPCM contractor for the project.
The company is in the process of finalising off-take discussions with key partners in Europe, Japan, Korea, and China.
Once Galaxy has selected and finalised off-take security and partners, it will look to secure funding for the $68 million project.
According to the company, Risk advisory group Noah’s Rule has been appointed to advise on debt and equity structuring.
Galaxy believes the current economic climate presents an ideal time to commence building a project, with greater availability of labour and engineering resources meaning projects can be established at a significantly lower cost.
Managing Director Iggy Tan said the company was encouraged by the opportunities that the downturn in the market was presenting for Galaxy and the development of the Mt Cattlin project.
“While the present market conditions are obviously challenging for many companies in the resources sector, we see a number of benefits arising from this market including access to people and engineering capability and lower labour and operating costs,” Tan said.