Galaxy Resources Limited (ASX:GXY) Finalises James Bay Farm-In Agreement With Lithium One Inc. (CVE:LI)
Perth, Feb 15, 2011 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) ("Galaxy") is pleased to announce that the parties have signed the formal farm-in and joint venture agreement ("Agreement") with Lithium One Inc. (CVE:LI) (PINK:LITHF) of Canada to acquire up to 70% of the James Bay Lithium Pegmatite Project in Quebec.
Under the terms of the agreement, Galaxy will acquired an initial 20% equity interest in the James Bay Project for C$3 million. Galaxy will have the potential to increase its stake to 70% through the completion of a definitive feasibility study within a 24 month period. Whilst the formal agreement has been executed, the initial payment of C$3 million is subject to minor conditions involving transfer of some minor tenements from one option holder to Lithium One. Galaxy expects the conditions to be satisfied within the next month.
The James Bay Project is an extensive high-grade spodumene pegmatite, near-surface deposit, with a NI 43-101 compliant resource and close proximity to key infrastructure.
Galaxy Resources Managing Director, Iggy Tan, said "James Bay's location geology and low cost of entry make it a good fit with Galaxy's strategy of growing its lithium resource footprint. It will also create a source of lithium supply for the emerging lithium battery sector in North America."
"We have established a Canadian subsidiary, and the recruitment for an in-country project manager has commenced. Galaxy expects to be able to fast track the development of this project by constructing plants with similar design and capacity to those at the Mt Cattlin mine in Australia and Jiangsu lithium carbonate plant in China."
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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