PERTH (miningweekly.com) – Lithium miner Galaxy Resources on Friday told shareholders that it would look to revise the feasibility study of its Sal de Vida brine and potash project, in Argentina, after its potential joint venture (JV) partner failed to meet its equity deadline.
Earlier this month, Galaxy extended the date by which Sal de Vida Korea Corporation (SDVKC) could exercise its option to vest a 30% equity interest in the project.
However, SDVKC has failed to met the July 17 deadline, telling Galaxy instead that it did not consider the feasibility study, which was submitted in April, to satisfy all the criteria set out in the option agreement.
Under the terms of the option agreement, SDVKC had 90 days from the delivery of the feasibility study being delivered to decide on whether to exercise its option to acquire the 30% stake.
Galaxy told shareholders that it would now seek to resolve the technical issues raised by SDVKC.
The Sal de Vida project was expected to require a capital investment of some $369.2-million, to support yearly production of 25 000 t/y of battery-grade lithium carbonate and 95 000 t/y of potash, over a 40-year mine life.