West Perth-based junior Galan Lithium will rattle the tin for the third time since late-January as it aims further develop its Hombre Muerto West lithium brine project in Argentina.
West Perth-based junior Galan Lithium will rattle the tin for the third time since late-January as it aims further develop its Hombre Muerto West lithium brine project in Argentina.
The lithium aspirant told the market on Tuesday it planned to raise up to $25 million – courtesy of a $12 million share placement, coupled by a 1 for 4 non-renounceable entitlement offer of up to $13.3 million.
Galan also announced capital raises of $19.5 million and $14 million on January 31 and May 20 this year.
Under the placement, Galan said it would issue approximately 69.53 million shares at an issue price of 10.5 cents per share – which represented an 8.7 per cent discount to the company’s last closing price of 11.5 cents before ducking into its trading halt.
China-based Chengdu Chemphys Chemical Industry company – Galan’s potential offtake partner – or its allocated affiliate entity, will commit to subscribing for around $US3 million, or $4.5 million, worth of shares.
“The board has adopted a lower capital intensity Phase 1 development to an initial 4,000 tonnes per annum of lithium carbonate equivalent rate in light of market conditions,” Galan managing director Juan Pablo Vargas de la Vega said.
“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.”
Last month, the lithium aspirant announced it had signed an offtake prepayment memorandum of understanding with Chemphys – which upon execution of relevant definitive agreements, would deliver Galan a $US40 million offtake prepayment facility, with proceeds set aside towards phase 1 development at Hombre Muerto West.
Over the first five years of phase 1 production, Chemphys would also purchase 23,000 tonnes of lithium carbonate equivalent from Galan.
The company’s lithium assets in Argentina have also been a topic of conversation over the past month, after Galan revealed on August 6 that it had received an unsolicited, conditional non-binding indicative proposal from Puerto Rico-based EnergyX in relation to potentially acquiring lithium assets at Hombre Muerto West and its Candelas project.
Six days later, Galan confirmed it wouldn’t proceed in relation to entertaining EnergyX’s proposal.
Galan shares last changed hands at 10.8 cents, down 7 per cent, as of 12.49pm WST.
