Lithium Australia Limited (ASX: LIT) has entered into a binding agreement with Galan Lithium Ltd (ASX: GLN) the sale of the company’s remaining 20% interest in the Greenbushes South Lithium Project in Western Australia.
Under the Agreement Galan has agreed to acquire the company’s remaining 20% interest in the Greenbushes South Lithium Project tenements (including the tenements currently subject to application) and the company’s remaining 20% participating interest under the original acquisition and JV agreement.
In return, Galan will pay $2,000,000 to Lithium Australia and issue them $1,000,000 in Galan shares.
Galan has also granted Lithium Australia a conditional first right of refusal over certain lithium product produced from the tenements.
Our primary focus areas are the growth of our battery recycling division and commercialisation of lithium ferro phosphate (‘LFP’) cathode powders,” Lithium Australia Chief Financial Officer, Stuart Tarrant, said.
“A key risk for LFP production is the availability of lithium chemicals, which have the potential to become scarce as demand increases for EVs in the future. Importantly, this Agreement provides the Company with rights for lithium chemicals from the Greenbushes South Lithium Project, defined under the Original Acquisition and JV Agreement.
“Converting the prior investment into listed equity ensures that any upside generated by Galan for the Greenbushes South Lithium Project can be more readily realised should there be an opportunity to advance a core project of the company.”