Galan Lithium has made a break though deal that gives it 100% ownership of the disputed Catalina lithium project in Argentina.
The company has managed to bypass the dispute between the Catamarca and Salta provincial authorities over whose territory Catalina sits in.
This has been done by negotiating directly with the owner of Catalina and reaching agreement that Galan will move to 100% ownership in return for 9.76 million shares in the Australian company.
Long-standing border dispute
Galan says that there has been a long-standing border dispute between the two provinces.
And by ‘long-standing’ that means more than 100 years.
The disputed area between Salta and Catamarca includes the northern part of the Hombre Muerto salar which, the company says, does not have a “foreseeable resolution”.
The ownership is being disputed by Salta and can be resolved only by the Federal Congress.
“It is not expected that such a resolution will eventuate in the foreseeable future,” the company states.
Highly prospective area
But with the deal hammered out with the ground’s owner, Galan says the uncertainty around the private ownership and potential mine development has now been resolved.
Managing director Juan Pablo Vargas de la Vega said the acquisition represents a “highly significant value accretive” transaction for Galan.
“It resolves the security of tenure in this highly prospective area favourably for exclusive benefit of Galan and its shareholders.”
“As there are now no competing interests, our team can advance exploration and evaluation activities at Catalina with the objective of delineating a maiden resource,” Mr Vargas de la Vega added.
Comes on heel of successes at HMW project
This follows a recent announcement that, at Galan’s flagship Hombre Muerto West, project, the pilot plant confirmed the company’s ability to produce premium quality lithium chloride concentrate from its Catamarca province project.
The company reported the premium 6% grade of the concentrate is equivalent to 31.9% lithium carbonate.
The samples from the pilot plant are now ready to be distributed to potential offtake partners.
These recent developments follow last month’s issuing of initial permits for Hombre Muerto West by Catamarca’s Mines Department.
