Galan Lithium Limited (ASX: GLN) announced that it has
entered into an asset acquisition agreement with Lithium Australia NL (ASX: LIT) to purchase an 80% interest in the Greenbushes South Lithium project.
The Greenbushes South lithium project is located 200 km south of Perth, with an area of 353 km2. It was originally acquired by Lithium Australia NL due to its proximity to the Greenbushes lithium mine, currently the largest hard-rock lithium mine in the world, operating since May 2014 by
Talison Lithium Pty, an incorporated joint venture between Tianqi Lithium Corporation (51%) and Albemarle Corporation (49%).
Australian mining company IGO Limited recently signed a deal to acquire a 24.99% stake in Greenbushes from Tianqi Lithium.
The project covers the southern strike projection of the geological structure that hosts Greenbushes. The project area begins approximately 3km south of the Greenbushes open pit mining operations, Galan said.
Greenbushes currently produces a concentrate of the lithium mineral
spodumene to feed both China and Western Australian based mineral conversion plants or consumers of spodumene concentrates in Europe, North America, and China.
Galan already holds a 100% interest in an exploration license application
covering a total area of approximately 43 km2, about 15kms south of the Greenbushes mine.
The company also holds two lithium projects totalling around 25,000 hectares in Argentina.