An international lithium producer, with a portfolio spanning Australia, Canada and Argentina, has entered into a binding agreement to steel a major stake in one of its operations to a South Korean steelmaker.
Galaxy Resources Limited announced this week that it has entered into an agreement with South Korean POSCO which will see POSCO acquire a stake in the company’s Argentinian Salar del Hombre Muerto package.
The deal, which consists of a $280 cash consideration, will see POSCO acquire a package of tenements just north of Galaxy’s world class Sal de Vida Project.
Galaxy will retain a 100% interest in the tenements on the southern area of the Salar del Hombre Muerto, located in the Catamarca Province.
POSCO and Galaxy will also work closely to explore potential cooperation to maximise future development and operational synergies for their respective projects on the Salar del Hombre Muerto.
“This transaction with POSCO underlines the significant previously unrecognised value of Galaxy’s tenements on the Salar del Hombre Muerto and provides a substantial cash injection which underwrites the development of the Sal de Vida lithium brine project,” said Martin Rowley, Chairman of Galaxy.
“We are very pleased to have developed what we see as a mutually beneficial relationship with POSCO with this transaction and look forward to close-co-operation with POSOC on our respective projects.”
According to Reuters, POSCO said in a statement on Monday that it would also build a lithium plant in Argentina, planning to produce 25,000 tonnes of the commodity per year for 20 years starting from 2021.