Galaxy Resources signs tantalum deal

Galaxy Resources has signed a sales agreement with Global Advanced Metals for tantalum concentrate produced at its Mt Cattlin operation near Ravensthorpe.

GAM, which owns the world's largest-known resources of tantalum near Greenbushes, has agreed to purchase up to 200,000 lbs of contained tantalum pentoxide over the next five years.

In a statement to the Australian Securities Exchange, Galaxy said the long term sales agreement will be based on a CPI-adjusted price of raw tantalum concentrate product (around 3 per cent tantalum pentoxide).

"GAM intends to further upgrade this material into a saleable form at its tantalum Greenbushes operations in Western Australia," the statement said.

Galaxy Managing Director, Iggy Tan said the Company is pleased to form a partnership with an established tantalum producer like Global Advanced Metals.

"By selling tantalum as a primary concentrate, Galaxy is able to establish a market for its tantalum, but without the costly process of upgrading the material," said Mr Tan.