Perth, April 16, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) is pleased to announce that it has received Letters of Intent from potential off take partners for its total available production of Lithium Carbonate (17,000 tpa) commencing 2011.
In an announcement on 3 March 2009, Galaxy announced that on a trip to Asia, Galaxy representatives had met with key trading houses, battery and automobile manufacturers in Japan, Korea, and China to discuss potential off take arrangements of battery grade lithium carbonate.
Galaxy has now received signed Letters of Intent for potential partners from Europe, Japan and China. The off take interest amounts to 130% of the available 17,000 tpa of lithium carbonate production.
The Company will move to finalise these off take arrangements and partners in the next few months.
Galaxy Resources Managing Director Iggy Tan said the strong response received from potential off take partners bode well for the future of the Mt Cattlin lithium-tantalum project.
"We are very encouraged by the level of interest we've received from potential off take partners," said Mr Tan.
"Securing more than 130% of our expected annual output indicates there is a strong demand for battery grade lithium carbonate.
"We continue to feel confident about the future of the Mt Cattlin project and look forward to completing the Definitive Feasibility Study (DFS) for the lithium carbonate processing component of the project."
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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