Galaxy Resources Limited (ASX:GXY) Signs Tantalum Concentrate Sales Agreement
Perth, Dec 14, 2010 AEST (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) (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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