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Galaxy Resources hires JPMorgan on $376mn Lithium, Potash project

Lithium mine

Galaxy Resources, a leading publicly traded Australian mining company, has announced that it has hired JPMorgan as a financial advisor to evaluate the company’s “strategic options” in regard to its Sal de Vida lithium, potash project in Argentina.

The announcement confirms speculation, coming from media outlet The Australian, that the firm is looking to sell its stake in the project to a number of Chinese or Korean interested parties.

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“As previously advised to the market, the company is currently in discussions with a range of parties in relation to potential offtake and strategic partnership opportunities,” Galaxy said. “These discussions are preliminary in nature and there is no certainty as to whether a definitive transaction will eventuate from them.”

Speculation surrounding a potential deal for the project comes amidst strength in the regional lithium market, with Argentina, Chile and Bolivia accounting for more than 60% of the world’s annual lithium production.

Galaxy reveals that, once operational, the mine could produce up to 25,000 tonnes of lithium carbonate and 95,000 tonnes of potassium chloride each year, equating to annual revenues of $354mn, with a net operating cash flow of $273mn.

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