The company is focused on reaching production at the Abra project in the Gascoyne region of Western Australia and exploring its Woodlands, Manganese Range and Quartzite Well prospects.
() has started construction of its Abra Base Metals project with the aim of being up and running for initial production in 2021.
During the December quarter the first stage of the permanent camp, water supply and water treatment facility work was largely completed as well as topsoil clearing and storage, ground preparation at the permanent camp site and various site and access roadworks.
Galena also reported an upgraded JORC-compliant indicated and inferred mineral resource estimate for Abra of 41.1 million tonnes at 7.3% lead and 18 g/t silver at a 5.0% lead cut-off.
This represents an 8% increase in contained lead and 10% increase in contained silver in comparison to the December 2018 resource.
The higher category indicated portion of the resource now sits at 16.7 million tonnes at 8.5% lead and 24 g/t silver.
Prior to the quarter, Galena executed definitive agreements with Toho setting out the terms for Toho’s investment of $90 million in three tranches for a 40% ownership interest in Galena’s subsidiary, AMPL.
This included a tranched payment of $20 million paid on initial closing of the transaction for 8.89% of AMPL.
Once Galena issues the DFS for Abra a further $10 million will be paid for an additional 4.44% of AMPL, with $60 million paid once project financing debt for the project has been confirmed for a further 26.67%.
Under the terms Galena and Toho will each have the right to enter into offtake agreements with AMPL to purchase their respective share of AMPL’s high-grade high-value lead-silver concentrate on arms-length, benchmark terms.
Galena concluded an offtake agreement with IXM SA, a Swiss metal commodity trading company, to sell 65,000 tonnes per year of Abra lead-silver concentrates for…