Name of the Project
Sal de Vida lithium/potash project.

Location
(The project is located) O on the Salar del Hombre Muerto, in north-west Argentina.

Project Owner/s
Galaxy Resources.

Project Description
Sal de Vida has a Joint Ore Reserves Committee-compliant ore reserve estimate of 1.14-million tonnes of retrievable lithium carbonate equivalent and 4.2-million tonnes of lithium carbonate equivalent in mineral resources, supporting a long-life, low-cost operation.

Development will be split into three separate stages.

Stage 1 will comprise a brine evaporation and processing operation at Salar del Hombre Muerto, producing technical-grade lithium carbonate.

Stage 2 will be a duplicate of Stage 1, while Stage 3 will involve the construction of a downstream purification facility at a separate, off-site location to upgrade the primary grade product to battery-grade lithium carbonate.

Until mid-2019, Galaxy envisaged development as a single-stage project by employing a conventional evaporation flowsheet to produce battery-grade lithium carbonate at site and potash as a by-product.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Nots stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Stage 1 is targeting production in 2022.

Latest Developments
Galaxy Resources has announced plans to raise A$161-million to fund the Stage 1 development of the project.

The miner told shareholders on November 25 that it would undertake a 1-for-14 fully underwritten pro-rata accelerated nonrenounceable entitlement offer and institutional placement.

The institutional placement will comprise about 65-million shares, at A$1.70 each, to raise an initial A$111-million, while the entitlement offer will consist of a further 29-million shares to raise about A$50-million.

The issue price represents a 15% discount to Galaxy’s last closing price and a 12.5% discount to the company’s theoretical ex-rights price.

The front-end engineering design for Stage 1 will be completed by the first quarter of 2021, with early works to start early in the year and plant construction scheduled for late 2021.

The company is expected to meet its previously stated development timeline and to take advantage of an expected stronger lithium pricing environment from late 2022.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Galaxy Resources, tel +61 8 9215 1700, fax +61 8 9215 1799, or email reception@galaxylithium.com or info@galaxylithium.com.