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PERTH (miningweekly.com) – Lithium miner Galaxy Resources on Monday confirmed the appointment of JP Morgan as its financial adviser to evaluate what it called ‘strategic options’ for its Sal de Vida project, in Argentina.
The confirmation came following a media report that suggested Galaxy was looking to divest of a noncontrolling interest in the Sal de Vida project, worth up to $350-million, through an offtake agreement.
The report in The Australian, stated that a number of parties had expressed an interest in the project, including Chinese majors and Korea’s steel giant Posco.
While not confirming the media report, Galaxy on Monday told shareholders that the company was currently in discussions with a range of parties in relation to potential offtake and strategic partnership opportunities.
However, the company noted that these discussions were preliminary in nature and that there was no certainty that a definitive transaction would eventuate.
The $375.5-million Sal de Vida project is expected to produce 25 000 t/y of battery-grade lithium carbonate and 95 000 t/y of potash over a 40-year mine life.
A definitive feasibility study estimated that the project had the potential to generate revenues of $354-million a year and average operating cash flow of $273-million a year.
Galaxy is expected to release an updated definitive feasibility study in May.