Galaxy, Traka do deal over WA projects

Galaxy Resources has potentially extended the life of its $68 million Mt Cattlin lithium project near Ravensthorpe after striking a deal to acquire a majority interest in nearby tenements owned by Traka Resources.

Galaxy has agreed to buy an 80 per cent interest in several tenements adjacent to the $68 million lithium project which the company is currently developing.

Under the deal, Galaxy will make an upfront cash payment of $145,000 to Traka, which will hold the remaining 20 per cent interest in the tenements under a joint venture agreement.

The JV deal will see Traka free carried to production on any mine development based on lithium and tantalum operations on the tenements, and free carried on the completion of a feasibility study on gold or any other commodity.

Galaxy managing director Iggy Tan said the acquisition has the potential to further extend the life of the project, currently at 15 years.

"Our clear intent it to fast track moves towards production and build a sustainable resource and tenement base," Mr Tan said.

"This acquisition is a clear example of the Company's intent to capture a large part of total world lithium production at a time when vehicle manufacturers are clearly showing a preference towards long life, battery fuel cell vehicles."