Perth, Australia – 10 September 2024 | Galan Lithium Limited (ASX: GLN) ("Galan" or "the Company"), an ASX-listed lithium exploration and development company, is pleased to announce the launch of a capital raising of up to A$25 million. This capital will be raised through a combination of a fully committed Placement and a 1-for-4 non-renounceable Entitlement Offer. Funds raised will support the full funding of the Phase 1 development of the Hombre Muerto West (HMW) Lithium Brine Project in Argentina, driving the Company toward production.
Highlights:
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A$12 Million Placement: Galan has secured firm commitments from institutional, sophisticated, and professional investors for a Placement of approximately A$12 million at A$0.105 per share.
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Entitlement Offer to Raise Up to A$13.3 Million: Galan has launched a 1-for-4 non-renounceable Entitlement Offer at A$0.105 per share to raise up to an additional A$13.3 million. This offer will be open to eligible shareholders with an Entitlement Offer Record Date of 13 September 2024 and Open Date of 18 September 2024.
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Chemphys to Invest A$4.5 Million: Galan’s proposed offtake partner, Chengdu Chemphys Chemical Industry Co., Ltd (“Chemphys”), agreed to invest approximately A$4.5 million under this Placement (subject to the completion of definitive offtake agreements).
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Use of Funds: The funds raised from the Placement and Entitlement Offer, combined with Chemphys’s planned offtake prepayment, will fully fund the development of HMW Phase 1, covering corporate overheads and working capital.
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Next Steps: The Company remains on track to begin its plans for production, which is expected to take place in the second half of 2025.
Juan Pablo (JP) Vargas de la Vega, Managing Director of Galan Lithium, commented: “We are delighted with the support for the Placement and welcome a number of new investors to the register. In addition, on behalf of the Board of Directors, I would like to thank our shareholders for their ongoing support.
We also welcome the participation of Chemphys in the Placement which further strengthens the relationship between our companies.
The Board has adopted a lower capital intensity Phase 1 development to an initial 4,000 tpa LCE rate in light of market conditions. Funds raised from the Offer and the planned Chemphys prepayment provide the means to complete this development and keep our planned start to production in the second half of 2025.
Amid challenging market conditions Galan is moving forward with the development of HMW. We remain confident about the project economics underpinning the HMW development and the future of the lithium market.”
Capital Raising Overview:
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Placement: The A$12 million Placement was conducted at A$0.105 per share, representing an 8.7% discount to the last closing price and a 16.1% discount to the 5-day VWAP.
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Entitlement Offer: Eligible shareholders will be offered the opportunity to subscribe for 1 new share for every 4 shares held at the same price of A$0.105 per share.
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Key Dates: The Entitlement Offer opens on 18 September 2024 and will close on 3 October 2024, with new shares issued by 10 October 2024.
About the Hombre Muerto West (HMW) Project:
HMW is a world-class lithium brine project located in the Hombre Muerto Salar in Argentina, within the renowned ‘Lithium Triangle.’ It is located at a ~16 km by 1-5 km region on the west coast of Hombre Muerto Salar neighbouring Arcadium Lithium to the east. HMW currently comprises twenty one mining tenements. Geophysics and drilling at HMW demonstrated significant potential of a deep basin. In March 2024 an updated Mineral Resource estimate was delivered totalling 7.9Mt of LCE @ 883mg/l Li.
Juan Pablo Vargas de la Vega
Managing Director
jp@galanlithium.com.au
Terry Gardiner
Non-Executive Director
TGardiner@galanlithium.com.au
About us:
About Galan Lithium Limited:
Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan’s wholly owned 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 (Arcadium Lithium, formerly Livent Corporation), Sal de Vida (Arcadium Lithium, formerly Allkem) and Sal de Oro (POSCO) lithium projects. Galan is also exploring at Greenbushes South in Western Australia, just south of the Tier 1 Greenbushes Lithium Mine.
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au