- Firm commitments received to raise A$31.5 million through an institutional placement priced at A$1.05 per share
- Strong support received from domestic and offshore institutional and sophisticated investors
- Placement funds will be used to purchase long lead items for the LCE pilot plant and the Stage 2 DFS at Hombre Muerto West, whilst providing contingency funding for additional Greenbushes South work, further exploration and production well drilling.
- Galan to undertake Share Purchase Plan of up to approximately A$5 million for existing eligible shareholders
- Galan well-funded with pro-forma cash position of approximately A$50 million on completion of the Placement
Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has received firm commitments to raise A$31.5 million through an over-subscribed placement to institutional, sophisticated and professional investors (Placement).
The Placement provides the Company with significant flexibility with respect to its ongoing capital expenditure requirements at Hombre Muerto West (HMW), Candelas and Greenbushes South. In particular, proceeds from the Placement will be applied to accelerate:
- Purchase of long lead items in preparation for stage 1 (4ktpa LCE) including; liners, piping and lime plant;
- Prepayment for earthworks contractor;
- Workers camp expansion;
- Stage 2 DFS and production expansion studies;
- Further exploration and production well drilling;
- Contingency for extra work at Greenbushes; and
- General working capital.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“This is an exciting time to be involved in the Galan story. I wish to thank all the placement participants, old and new, who have strongly supported the Galan production plan that will take it from an initial smaller scale lithium producer to a big 60ktpa player. I also encourage all our loyal shareholders to get on board and participate in the entitlement issue which will get underway later this week.”
Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan’s flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto salar in Argentina, within South America’s ‘lithium triangle’. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina. It is home to the established El Fenix lithium operation (Livent Corporation) and the Sal de Vida (Allkem) and Sal de Oro (POSCO) lithium projects. Galan is also exploring at Greenbushes South in Western Australia, approximately 3km south of the Tier 1 Greenbushes Lithium Mine.