Galan Lithium Limited (ASX: GLN) ("Galan" or the "Company"), a leading lithium exploration and development company, is thrilled to announce a significant equity raising of A$19.51 million. This strategic financial initiative has been strongly supported by both offshore and domestic institutional, sophisticated, and professional investors, leading to an oversubscribed Placement of A$18 million at A$0.46 per share. Additionally, Galan is set to offer a non-underwritten Share Purchase Plan (SPP) of A$1.5 million to its existing shareholders.
This capital injection is a testament to the confidence the investment community has in Galan's vision and its Hombre Muerto West (HMW) project. The funds raised will be instrumental in covering the ongoing development costs of HMW Phase 1, further exploration and resource work, corporate overheads, and providing the necessary working capital to ensure the project's success.
The Company's board and management team have also shown their commitment to Galan's future by subscribing for A$1.5 million in the Placement, subject to shareholder approval. This move underscores their belief in the value and potential of the HMW project.
Galan's HMW project is positioned in the heart of Argentina's lithium triangle, an area renowned for its high-grade lithium resources. The proceeds from this equity raising will enable Galan to continue its development activities, ensuring that the HMW Phase 1 construction progresses smoothly. This financial boost will also provide Galan with the flexibility to finalize negotiations for alternative funding solutions, including debt and prepayment facilities, to fully fund the completion of HMW Phase 1.
Canaccord Genuity (Australia) Limited and Jett Capital Advisors LLC have played pivotal roles as Joint Lead Managers and Bookrunners to the Placement, further highlighting the robustness and appeal of Galan's equity raising initiative.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented: “We are very pleased with the outcome of the placement considering the tougher market conditions at the moment. The strong support from both new and existing institutional investors is a clear endorsement of Galan’s timely path to low cost, Phase 1 production at its 100% owned Hombre Muerto West lithium brine project in Argentina.”
About us:
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 3 km south of the Tier 1 Greenbushes Lithium Mine.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au