Galan Lithium announced on Monday that all conditions have been met for its previously announced A$20 million (approx. $13 million) share placement with Clean Elements Fund, paving the way for funding to complete Phase 1 construction of its Hombre Muerto West (HMW) lithium project in Argentina.
Settlement will take place in two equal tranches of $10 million. Tranche 1 settlement will occur within the next 5 business days and Tranche 2 of the Placement will settle no later than November 22, in line with the timing set out in the relevant shareholder approval, the company said.
The financing will support the finalization of Phase 1 construction of its HMW lithium project through 2025, with first lithium chloride concentrate production targeted for the first half of 2026.
"The team at Galan remains focused on advancing project delivery at HMW and we look forward to creating significant long-term value for shareholders as we progress towards production," Managing Director Juan Pablo Vargas de la Vega said.
"HMW's brine is the highest grade in Argentina with the lowest impurity profile. It also contains significantly less magnesium and calcium than the levels found in the Salar de Atacama in Chile which, when combined with HMW's high lithium grades, gives rise to the highest lithium recoveries in the lithium brine sector to date," Clean Element's Chairman Ofer Amir said.
"This exceptional resource quality enables a low-cost, evaporation process—positioning Galan to become a high-margin, globally competitive lithium producer. In our view, Galan will not just be participating in the lithium market, it will be setting a new benchmark," Amir added.
By Duygu Alhan
Anadolu Agency
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