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Galaxy Resources' Sal de Vida production date set for 2022

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(Kitco News) - Galaxy Resources said Wednesday it is now funded to develop and commission stage one of the Sal de Vida project by the end
of 2022.

The company set a timeline for the project in Catamarca Province, Argentina.

Galaxy highlighted that production capacity for stage one is set at 10,700 tpa LC with 80% at battery grade quality.

Development capital cost estimate of US$153 million and cash operating costs of US$3,500 per tonne LC. The company forecasts pre-tax net present value of US$809 million at an 8% discount rate and a pre-tax internal rate of return of 43%. The payback period will be under two years from the start of commercial production.

Galaxy is moving to the next phase of the project.

"The project team will now move into the next phase with detailed engineering to commence on the plant and construction of the ponds commencing immediately. We remain on schedule for first production in late 2022 although COVID-19 continues to present significant challenges to the team and remains a risk to the project schedule," said CEO Simon Hay.

The company is touting its strong cash position in its year-end, also released Wednesday. The company highlighted a A$161.1 million equity financing package, as well as US$210.4 million in cash and financial assets. The company reported a loss in 2020, a US$31.2 million drop. The company said much of the financial hit was due to a mid-year impairment of US$25.0 million on inventory, property plant and equipment.

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