Battery mineral explorer Galan Lithium has struck an offtake deal and potential financing package worth up to US$100 million with global miner Glencore.
Galan signed a binding term sheet with Glencore for offtake for up to 100 per cent of its lithium chloride concentrate from its under-development Hombre Meurto West (HMW) project in Argentina.
Glencore also offered to provide a secured financing prepayment facility for US$70 million to US$100 million to fund phase one of HMW’s development, subject to conditions.
Under the five-year offtake deal, Glencore will buy lithium chloride product from Galan’s flagship project to be toll treated into lithium carbonate for sale and export from Argentina.
Phase one is estimated to have a capacity of 5,400 tonnes of lithium carbonate equivalent in lithium chloride concentrate per annum.
The parties also agreed that Glencore would have the first right to negotiate the marketing or financing of phase two, being the expansion of the project.
Galan managing director Juan Pablo said they were delighted to announce the milestone deal while on the path to commencing commercial production at HMW in the first half of 2025.
“The agreement with Glencore is a validation of the quality of our world class project and endorses the calibre and experience of Galan’s team,” he said in a statement.
“Our agreement with Glencore significantly de-risks our project and we are very well poised to secure finance for phase one of the HMW project.”