Galan Lithium (ASX: GLN) managing director Juan Pablo Vargas de la Vega joins Small Caps to discuss the company’s signing of an HMW lithium project offtake prepayment agreement MoU with China’s Chemphys.

The deal provides Galan with potential for early cash flow with Chemphys to provide an approximately $60 million (US$40 million) offtake prepayment facility upon execution of definitive agreements.

In return Galan will sell Chemphys a total of 23,000 tonnes of lithium carbonate equivalent (LCE) over the first five years of Phase 1 production from the HMW project

The signing of the agreements comes after Galan received positive feedback from potential customers of HMW high grade, low impurity lithium chloride samples.

Chemphys has been producing high purity lithium chemicals since 1998 and the offtake partnership and the financing prepayment will be foundational agreements for the HMW project and Galan.

Article:
https://smallcaps.com.au/galan-lithium-offtake-prepayment-deal-hmw-lce-chengdu-chemphys/

For more information on Galan Lithium:
https://smallcaps.com.au/stocks/asx-gln/