Galaxy Resources Limited - Signs Tantalum Concentrate Sales Agreement
13.12.2010 | ABN Newswire
08:54 AEST Dec 14, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.Perth, Australia (ABN Newswire) - Galaxy Resources Limited (ASX: GXY) (PINK: GALXF) ('Galaxy') is pleased to announce it has signed a sales agreement with Global Advanced Metals Pty Ltd ('GAM'), for tantalum concentrate produced at its Mt Cattlin operation.
GAM, which owns the world's largest-known resources of tantalum, has agreed to purchase up to 200,000 lbs of contained tantalum pentoxide over the next five years.
The long term sales agreement will be based on a CPI-adjusted price of raw tantalum concentrate product (around 3% tantalum pentoxide) from Mt Cattlin, near Ravensthorpe, Western Australia. GAM intends to further upgrade this material into a saleable form at its tantalum Greenbushes operations in Western Australia.
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.
About Galaxy Resources Limited:
Galaxy Resources Limited (ASX:GXY) (PINK:GALXF) is an emerging mining and chemical company focusing on lithium and tantalum production. Galaxy is at an advanced stage of developing its Mt Cattlin Lithium Project (hard rock spodumene) in Ravensthorpe, Western Australia. The Project encompasses a mine and minerals plant which will produce 137,000 tpa of 6% Li2O spodumene concentrate. Galaxy intends to add value to the Mt Cattlin Project by establishing its own downstream lithium processing facilities in China.
The Company is finalising plans to establish a lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate.
Contact:
Galaxy Resources Limited
Iggy Tan, Managing Director
TEL: +61-8-9215-1700
MOB: +61-419-046-397
http://www.galaxylithium.com