Galan Lithium

Primary ticker: ASX:GLN
Stage of development: Exploration, Development
Commodity: Lithium
Project to promote: Candelas and Hombre Muerto West
Project location: Argentina

Live financials

Cash: AUD$1.1M
Debt: Nil

Major shareholders:
Avelock Mining Investment (90% Owned by Ganfeng) – 10.9%
Juan Pablo Vargas de la Vega – 7.5%
Wide Range Corp – 4.5%
Terry Gardiner – 4.1%
Kingsreef Pty Ltd – 3%

Galan Lithium Limited is an ASX listed company (ASX:GLN) exploring for lithium brines within South America’s Lithium Triangle on the Hombre Muerto salar in Argentina. Hombre Muerto is proven to host a combination of the highest lithium grade and lowest impurity levels within the world and is home to Livent Corporation’s El Fenix operation, Galaxy Resources and POSCO’s Sal de Vida projects.

In March 2020, Galan updated its resource estimate ~1.8Mt of LCE from its two projects (Candelas and Hombre Muerto West (HMW)). Despite being on the market for less than two years, Galan is rapidly consolidating its footprint and steadily advancing its Pre-Feasibility Study expected to be completed during the Q2-Q3 2021.

Management Profile

Juan Pablo Vargas de la Vega, Managing Director & Company Founder

JP is a Chilean/Australian mineral industry professional with 18 years broad experience in ASX mining companies, stockbroking and private equity firms JP has been a specialist lithium analyst in Australia, has also operated a private copper business as in Chile and has also worked for BHP, Rio Tinto and Codelco.

Terry Gardiner, Non-excecutive Director

+20 years’ experience in capital markets, stockbroking & derivatives trading and prior to that had many years trading in equities & derivatives for his family accounts. Currently a Director of stockbroking firm Barclay Wells Limited and a Non-executive Director of Cazaly Resources Limited.

What is your rationale for attending 121 Mining Investment?

Despite the current down term investment due to COVID-19. We are looking to connect with long term investors that can walk with us. We have a special project which combine one the highest lithium grade and lowest levels of impurities in the world. Also, we are interested in talking to investors interested in the lithium sector/batteries and renewables.

In general terms, we are looking to presenting GLN to the public showing its rapid advances for its lithium project and also update previous participants to 121.

We always are looking to gain market support. In regard to capital raise, we won’t be having another one yet as we have recently raised funds two weeks ago.

We expect for the rest of the year:

• Finalise our evaporation pond simulation lay out for each of our projects (Candelas and Hombre Muerto West (HMW)), followed by
• Finalise a processing plant simulation to producing battery grade lithium carbonate from Candelas and HMW
• GLN will also be sending brines to the labs to bench top processing aiming to achieve also battery grade lithium carbonate.
• The Company is also expected to acquire further ground at HMW (currently under and option agreement) to consolidate a larger and continue project at HMW. As a result, we expect to increase its resource beyond 1.8Mt LCE.

What recent news would you like to highlight to investors attending?

March 2020 -The maiden resource from HMW which has increase GLN’s resource by 165% to a total of ~1.8Mt LCE
Oct 2019 – Maiden resource for Candelas for 685Kt LCE

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Finalise our modelling for evaporation ponds and processing plant simulations for battery grade lithium carbonate production.

6 Months:

Achieve battery grade lithium carbonate production from our brines at lab level.

12 Months:

Pilot Plant permits and commencing of pilot plant construction.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Our biggest risk remain COVID-19, its duration and how bad it can affect the global economy. Despite this, we believe that the market will recover in the short to mid-term. Our aim is to continue to advance and de-risk our project and to show that we can be competitive among one of the best in the world. This is due to the fantastic chemical setting of high lithium grade and very low levels of impurities withing the Hombre Muerto salt flat resulting in potentially very competitive operating cost.

What do you think makes your company such a compelling investment?

First Cobalt offers direct exposure to the EV revolution with first production targeted for Q4 2020. The partnership with Glencore for feed and offtake along with the debt financing framework should provide comfort in the strength of the business plan.