Galaxy Resources has completed the $280m transaction to sell the northern lithium tenement package at the Salar del Hombre Muerto in Argentina to South Korea’s Posco.
The companies finalised the deeds for the tenement package, which contains around 1.58 million tonnes (Mt) lithium carbonate equivalent (LCE) of JORC-compliant measured and indicated resources and 2.54Mt of LCE of JORC-compliant total resources.
The agreement for the transaction was signed by the parties in May this year.
Galaxy noted that the transfer of brine extraction rights over an additional five tenements, worth $15m, is subject to certain closing conditions and is expected to be completed by the end of this month.
The company will receive the total consideration once the transfers are registered in the Salta and Catamarca provincial mining courts, which is anticipated to be completed during the coming week.
The proceeds from the transaction will be used to fast-track the development of Galaxy’s Sal de Vida Project in Catamarca Province.
According to the company, the project is estimated to contain 1.14Mt LCE of JORC compliant ore reserves.
Galaxy appointed JP Morgan Australia to evaluate options for strategic partnerships for the development of the Sal de Vida project.
In a statement, Galaxy Resources said: “This process is now well underway with the company currently negotiating with a short list of potential investors.”
The company also agreed for mutual cooperation with Posco over their respective projects.
Galaxy is currently undertaking further drilling to convert more of its 5.16Mt LCE total resource to increase the current 1.4Mt LCE reserve.