Galan Lithium has joined a band of companies in the search for lithium in Western Australia’s South West region by acquiring an 80 per cent stake in the Greenbushes South project from Lithium Australia.
Greenbushes South is just three kilometres south of Talison Lithium’s Greenbushes lithium mine, one of the largest hard-rock spodumene deposits in the world.
Lithium Australia was originally attracted to Greenbushes South as it follows along the southern strike of the geological structure that hosts the Greenbushes deposit.
Work by earlier explorers within Greenbushes South shows presence of pegmatites, a rock type that may host spodumene, which has provided Galan and Lithium Australia with immediate exploration targets.
In the past, the site was also mined for tin and tantalum, before lithium became the major revenue driver in the area.
Galan managing director Juan Pablo Vargas de la Vega said: “We are delighted to acquire a significant majority stake in a highly prospective lithium project in a world-renowned lithium district (increasing) our existing lithium exploration ground at Greenbushes.
“We have secured an outstanding exploration opportunity to add to our existing assets in Argentina that have a potential production profile.
“We will proceed to exploring this tenure in a methodological step-by-step manner and progress tenement applications to grant.”
Lithium Australia’s decision to divest the majority stake in Greenbushes South is in line with its strategy to reduce financial commitment while retaining its exposure to the commodity.
“The company’s divestment is consistent with our ongoing strategy to advance proprietary, downstream lithium and battery technologies and to deliver an ethical, sustainable supply of energy metals for batteries through innovative minerals processing and battery recycling techniques, thus creating an energy-metals loop,” Lithium Australia managing director Adrian Griffin said.
“Lithium Australia is pleased to partner with Galan, a dedicated explorer that will drive the Greenbushes South lithium project forward.
“This transaction means that the company reduces its financial commitment and exploration risk yet retains significant lithium exposure by way of both Galan shares and 30 per cent project equity.”