{"id":14869,"date":"2025-06-20T11:54:37","date_gmt":"2025-06-20T11:54:37","guid":{"rendered":"https:\/\/investingsstrategist.com\/index.php\/2025\/06\/20\/galan-lithium-limited-a20-million-placement-to-strategic-partner\/"},"modified":"2025-06-20T11:54:37","modified_gmt":"2025-06-20T11:54:37","slug":"galan-lithium-limited-a20-million-placement-to-strategic-partner","status":"publish","type":"post","link":"https:\/\/investingsstrategist.com\/index.php\/2025\/06\/20\/galan-lithium-limited-a20-million-placement-to-strategic-partner\/","title":{"rendered":"Galan Lithium Limited: A$20 million Placement to Strategic Partner"},"content":{"rendered":"<\/p>\n
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Galan Lithium Limited (ASX:GLN) ( Galan or the Company ) is pleased to announce it has secured a binding commitment for a A$20 million placement ( Placement ) at A$0.11 per share, a 21% premium to the last closing price of A$0.091 as at 19 June 2025 from an existing shareholder, The Clean Elements Fund ( Clean Elements ). Additionally, Clean Elements will receive one unlisted option for every\u00a0two\u00a0shares\u00a0issued under\u00a0the\u00a0Placement,\u00a0with\u00a0an\u00a0exercise price\u00a0of\u00a0A$0.15 per\u00a0option\u00a0and\u00a0an\u00a0expiry date that is three years from the date of issue.<\/p>\n

The\u00a0Placement\u00a0is\u00a0subject\u00a0to\u00a0Clean\u00a0Elements\u2019\u00a0satisfactory\u00a0completion\u00a0of\u00a0due\u00a0diligence over\u00a0a\u00a0period\u00a0not longer\u00a0than\u00a077 days.\u00a0Full\u00a0completion\u00a0of\u00a0the\u00a0Placement\u00a0will\u00a0require shareholder\u00a0approval\u00a0which\u00a0will\u00a0be sought at a Galan general meeting, expected to be held in early September 2025 <\/span> . <\/p>\n

The Placement provides the final construction funding solution for Phase 1 (at 4ktpa LCE), of the Company\u2019s world class Hombre Muerto West project ( HMW ) in Argentina <\/span> , which will see production of lithium chloride concentrate in H1 2026. <\/p>\n

Managing\u00a0Director,\u00a0Juan\u00a0Pablo\u00a0(JP)\u00a0Vargas\u00a0de\u00a0la\u00a0Vega,\u00a0commented: <\/p>\n

\u2018 We are extremely pleased to receive further support from Clean Elements. HMW is a world-class lithium\u00a0project,\u00a0offering exceptional\u00a0scale\u00a0and\u00a0grade.\u00a0This\u00a0commitment\u00a0from\u00a0Clean\u00a0Elements, priced\u00a0at a significant premium to\u00a0our last closing share price, reflects the value proposition\u00a0provided by Galan. <\/p>\n

To\u00a0have\u00a0executed this\u00a0funding\u00a0agreement\u00a0whilst\u00a0facing\u00a0strong macro\u00a0headwinds\u00a0for\u00a0the\u00a0lithium industry is a huge achievement for Galan and further validates the unique attributes of HMW. With a clear pathway to first concentrate production, this support positions Galan to focus on execution. The next 12 months promise to be a transformational period for Galan and the team remains fully focussed on the creation of significant value for all shareholders.\u2019 <\/p>\n

Clean\u00a0Element\u2019s\u00a0Chairman,\u00a0Ofer\u00a0Amir,\u00a0stated: <\/p>\n

\u2018We are incredibly excited to partner with Galan Lithium on what we believe is one of the most compelling lithium opportunities in Argentina <\/span> today. After extensive evaluation of the Argentinian lithium landscape, HMW stands out as an exceptional world-class asset with the rare combination of scale,\u00a0grade,\u00a0and\u00a0execution\u00a0capability\u00a0that\u00a0positions it\u00a0to\u00a0be\u00a0a\u00a0major force\u00a0in\u00a0the\u00a0global\u00a0lithium market. This investment represents Clean Elements\u2019 confidence in Galan\u2019s transformative potential and our shared vision of powering the clean energy revolution. <\/p>\n

Our\u00a0investment\u00a0in\u00a0Galan\u00a0reflects our\u00a0disciplined\u00a0approach to\u00a0identifying\u00a0high-quality\u00a0lithium\u00a0assets\u00a0with strong\u00a0fundamentals\u00a0and\u00a0experienced\u00a0management\u00a0teams.\u00a0Galan\u2019s impressive\u00a0resource\u00a0base\u00a0of\u00a09.5\u00a0Mt LCE, combined with its low-cost position in the first quartile globally and proven operational track record\u00a0in\u00a0the\u00a0Hombre\u00a0Muerto Salar,\u00a0aligns perfectly\u00a0with\u00a0our investment criteria.\u00a0We\u00a0were\u00a0particularly impressed by Galan\u2019s strategic partnership with Authium, which enhances project economics through innovative processing technology while securing offtake agreements that de-risk the path to production. We look forward to supporting Galan beyond Phase 1 as they execute their long term production growth plan towards 60 ktpa LCE.\u2019 <\/p>\n

Details of the Placement <\/p>\n

The Company has received binding commitments for a total of 181,818,182 shares at an issue price of A$0.11 <\/span> per share. 90,909,091 options (exercisable at A$0.15 <\/span> with a 3 year expiry from issue date) will also be issued. <\/p>\n

The Placement is expected to settle in two\u00a0tranches: <\/p>\n

Tranche Two \u2013 A$10 million <\/span> , 90,909,091 shares and 45,454,545 options (exercisable at A$0.15 <\/span> with a 3 year expiry from issue date), subject to shareholder approval and completion of due diligence. Expected settlement on or around 28 November 2025 <\/span> . <\/p>\n

The proceeds of the Placement will be utilised to complete Phase 1 construction activities in H2 2025 required\u00a0to\u00a0realise\u00a0first lithium\u00a0chloride\u00a0production\u00a0in\u00a0H1\u00a02026.\u00a0The\u00a0Company notes\u00a0that\u00a0a\u00a0US$\u00a06\u00a0million prepayment facility will be available to the Company under the terms of the offtake and prepayment agreement with Authium Limited ( Authium ) (see announcement https:\/\/shorturl.at\/GaU0r) . <\/p>\n

In light of the current market conditions, the Company decided to pursue the Placement, which was structured at a 21% premium to\u00a0Galan\u2019s last closing price. Despite efforts to secure debt funding, the prevailing\u00a0economic\u00a0environment\u00a0has\u00a0resulted\u00a0in\u00a0unfavourable\u00a0terms\u00a0and\u00a0higher costs\u00a0associated\u00a0with debt. By opting for equity raising Galan will strengthen its balance sheet and minimise financing risk, whilst carrying no debt, as the Company brings HMW into production. <\/p>\n

About\u00a0Hombre\u00a0Muerto West <\/p>\n

HMW is a multi-decade, lithium brine project in Argentina <\/span> with compelling economics. Phase 1 provides\u00a0for\u00a0a\u00a04ktpa\u00a0LCE\u00a0operation,\u00a0producing\u00a0a\u00a06% LiCl\u00a0concentrate product\u00a0over\u00a0a\u00a0projected\u00a040-year life. Finalisation of Phase 1 and commencement of production is the key focus Galan. Beyond Phase 1, the Company will undertake a phased scaling approach, eventually ramping up to 60ktpa at the conclusion of Phase 4. This approach mitigates funding and execution risk and will allow for continuous process improvement. <\/p>\n

With a world class resource and a cost profile within the first quartile globally, HMW is a clear demonstration of the benefits of a high-quality lithium brine asset. These benefits are allowing Galan to progress through development and into production with a lower capital intensity and lower risk profile when compared to hard rock lithium (spodumene) projects. <\/p>\n

As importantly, lithium chloride is a key component for lithium iron phosphate (LFP) batteries, which have\u00a0become\u00a0the\u00a0dominant\u00a0battery product\u00a0globally.\u00a0With\u00a0the\u00a0ability to\u00a0be\u00a0cost\u00a0effectively\u00a0converted into a lithium dihydrogen phosphate or lithium carbonate, lithium chloride, as will be produced at HMW, is an ideal source for LFP batteries. <\/p>\n

Please\u00a0refer\u00a0to\u00a0Mineral Resource\u00a0Statement\u00a0for\u00a0Galan\u2019s\u00a0Total\u00a0Resources\u00a0of\u00a09.5Mt\u00a0LCE. <\/p>\n

The Galan\u00a0Board\u00a0has\u00a0authorised\u00a0this\u00a0release. <\/p>\n

For further information contact: <\/p>\n

\n
\n

COMPANY <\/span><\/p>\n

MEDIA <\/span><\/p>\n

Juan\u00a0Pablo\u00a0(\u2018JP\u2019) Vargas <\/span><\/p>\n

de\u00a0la\u00a0Vega <\/span><\/p>\n

Matt\u00a0Worner <\/span><\/p>\n

Managing\u00a0Director <\/span><\/p>\n

VECTOR\u00a0Advisors <\/span><\/p>\n

jp@galanlithium.com.au <\/span><\/p>\n

mworner@vectoradvisors.au <\/span><\/p>\n

+ 61 8 9214 2150 <\/span><\/p>\n

+61 429 522 924 <\/span><\/p>\n<\/div>\n<\/div>\n

About Galan <\/p>\n

Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan\u2019s flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto Salar in Argentina <\/span> , within South America\u2019s <\/span> \u2018lithium triangle\u2019. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within Argentina <\/span> . It is home to the established El Fenix lithium operation, Sal de Vida <\/span> (both projects are operated\u00a0by\u00a0Arcadium Lithium)\u00a0and\u00a0Sal\u00a0de\u00a0Oro\u00a0(POSCO)\u00a0lithium projects.\u00a0Rio\u00a0Tinto\u00a0is\u00a0now\u00a0in\u00a0the\u00a0process of acquiring Arcadium Lithium plc. Galan also has exploration licences at Greenbushes South in Western Australia <\/span> , just south of the Tier 1 Greenbushes Lithium Mine. <\/p>\n

About\u00a0Clean\u00a0Elements <\/p>\n

Clean Elements is a private holding company specifically founded to pursue the development of high performing lithium assets in Argentina <\/span> and globally. Clean Elements has a successful track record in investing\u00a0in\u00a0lithium brine\u00a0assets,\u00a0notably completing\u00a0a\u00a0financing transaction\u00a0with\u00a0NOA\u00a0Lithium\u00a0in\u00a02024. Clean Elements is partnered with Swiss financial expert firm ISP Securities Ltd., part of the ISP Group, who is a leading Swiss financial service provider specializing in wealth management, asset\u00a0management,\u00a0securitisation\u00a0and\u00a0trading\u00a0services. ISP\u00a0Group\u00a0has\u00a0companies\u00a0in\u00a0Switzerland\u00a0( Zurich <\/span> and Geneva <\/span> ), Dubai <\/span><\/span> , Hong Kong <\/span> , and Israel <\/span> . <\/p>\n

Contact: <\/p>\n

Ofer\u00a0Amir
ofer@thecleanelements.com
+97254492777 <\/p>\n

View original content: https:\/\/www.prnewswire.com\/news-releases\/galan-lithium-limited-a20-million-placement-to-strategic-partner-302486923.html <\/p>\n

SOURCE Galan Lithium Limited <\/p>\n<\/div>\n<\/p>\n<\/div>\n

News Provided by PR Newswire via QuoteMedia<\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Galan Lithium Limited (ASX:GLN) ( Galan or the Company ) is pleased to announce it has secured a binding commitment for a A$20 million placement ( Placement ) at A$0.11 per share, a 21% premium to the last closing price of A$0.091 as at 19 June 2025 from an existing shareholder, The Clean Elements Fund […]<\/p>\n","protected":false},"author":0,"featured_media":14870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-14869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/posts\/14869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/comments?post=14869"}],"version-history":[{"count":0,"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/posts\/14869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/media\/14870"}],"wp:attachment":[{"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/media?parent=14869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/categories?post=14869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/investingsstrategist.com\/index.php\/wp-json\/wp\/v2\/tags?post=14869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}