Galaxy Resources has completed the sale of its northern tenements at the Salar del Hombre Muerto in Argentina to POSCO.
The tenements are situated to the north of Galaxy’s Sal de Vida lithium and potash brine project, which is in South America’s so-called lithium triangle.
A total consideration of $US280 million ($387 million) less tax and deferred settlement costs will be released to Galaxy once the transfers are registered in the Salta and Catamarca provincial mining courts in the coming week.
The proceeds will be immediately used to accelerate Galaxy’s development of its Sal de Vida project, including negotiation with potential investors.
Galaxy’s transfer of brine extraction rights over an additional five tenements – worth $US15 million – is also expected to complete this November, subject to the meeting of certain conditions set previously.
The company’s retained tenements host 1.14 million tonnes (Mt) lithium carbonate equivalent (LCE) of JORC compliant ore reserves.
Further drilling was being undertaken at Sal de Vida to convert more of its 5.16Mt LCE total resource to increase the current 1.4Mt LCE reserve.