Galan Lithium secures binding offtake agreement with Glencore for Hombre Muerto West (HMW) lithium project

Australia-based Galan Lithium Limited, a developer of high-grade lithium brine projects in Argentina, signed a binding term sheet with a wholly owned subsidiary of Glencore for offtake for up to 100% of its premium lithium chloride concentrate from the Hombre Muerto West (HMW) lithium project and the offer to provide or facilitate a secured Financing Prepayment Facility (Facility) for US$70 to US$100 million, subject to conditions precedent being met.

Glencore will purchase technical grade lithium chloride product from Galan’s high-grade, low-impurity HMW Project in Catamarca Province, Argentina. The offtake commitment does not require Galan to have secured an export licence for its lithium chloride. Glencore will accept offtake for Galan’s lithium chloride to be toll treated into lithium carbonate for sale and export from Argentina.

The binding agreement is for a five-year period from commencement of commercial production for 100% of Galan’s Phase 1 production estimated at 5.4kt lithium carbonate equivalent (LCE) in lithium chloride concentrate per annum. The price payable by Glencore will be referenced to a mutually agreed lithium carbonate price index over a quotational period less a marketing fee, discount and penalties (if any). The agreement is renewable subject to mutual agreement between Galan and Glencore.

Galan also secured an offer from Glencore to provide or facilitate a binding proposal for the Facility to support funding of Phase 1, which is subject to certain conditions precedent being met including, amongst others, satisfactory due diligence to Glencore’s absolute discretion and draw down under the Facility will only become effective when the MOA and all transaction definitive documentation has been signed subject to Glencore’s satisfaction in its absolute discretion.

In parallel and while Galan is developing Phase 1 for maiden production at HMW in 1H 2025, the company is also advancing discussions for the development of Phase 2 at HMW.

Galan’s flagship assets comprise two 100% owned, world-class lithium brine projects, Hombre Muerto West (HMW) and Candelas, located on the Hombre Muerto salar in Argentina, within South America’s ‘lithium triangle’. HMW is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operations (Livent Corporation) and Sal de Vida (Allkem) and Sal de Oro (POSCO) lithium projects.

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