April 30, 2018 / 6:17 AM / 3 months ago

REFILE-Galaxy hires JP Morgan to advise on Argentina lithium mine options

(Refiles to correct spelling of “halted” in second paragraph)

MELBOURNE, April 30 (Reuters) - Australian lithium miner Galaxy Resources said on Monday it has appointed JP Morgan Australia to evaluate “strategic options” for its Sal de Vida lithium and potash project in Argentina.

Galaxy earlier halted trading in its shares after a report in The Australian newspaper said the developer was looking to offload its stake in the large and high quality deposit to Chinese or Korean interests.

“The company is currently in discussions with a range of parties in relation to potential offtake and strategic partnership opportunities,” Galaxy said in a filing to the Australian Stock Exchange.

Sal de Vida has the potential to generate total annual revenues around $354 million, scaling up to 25,000 tonnes per year of lithium carbonate and 95,000 tonnes of potassium chloride, according to the company’s website.

Galaxy said on Monday it expected to announce the results of a revised definitive feasibility study on the project in May.

Galaxy shares closed up 6.3 percent after trading resumed, giving the company a market capitalisation of about A$1.2 billion ($907 million).

$1 = 1.3226 Australian dollars Reporting by Melanie Burton; editing by Richard Pullin

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