{"id":1704,"date":"2025-06-20T13:44:09","date_gmt":"2025-06-20T13:44:09","guid":{"rendered":"https:\/\/thetradingdictionary.com\/index.php\/2025\/06\/20\/galan-lithium-limited-a20-million-placement-to-strategic-partner\/"},"modified":"2025-06-20T13:44:09","modified_gmt":"2025-06-20T13:44:09","slug":"galan-lithium-limited-a20-million-placement-to-strategic-partner","status":"publish","type":"post","link":"https:\/\/thetradingdictionary.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<div>\n<div>\n<p>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<p> The\u00a0Placement\u00a0is\u00a0subject\u00a0to\u00a0Clean\u00a0Elements&#8217;\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 <span> September 2025 <\/span> . <\/p>\n<\/p>\n<p> The Placement provides the final construction funding solution for Phase 1 (at 4ktpa LCE), of the Company&#8217;s world class Hombre Muerto West project ( <b> HMW <\/b> ) in <span> Argentina <\/span> , which will see production of lithium chloride concentrate in H1 2026. <\/p>\n<p><b> Managing\u00a0Director,\u00a0Juan\u00a0Pablo\u00a0(JP)\u00a0Vargas\u00a0de\u00a0la\u00a0Vega,\u00a0commented: <\/b><\/p>\n<p> &#8216; <i> 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. <\/i><\/p>\n<p><i> 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.&#8217; <\/i><\/p>\n<p><b> Clean\u00a0Element&#8217;s\u00a0Chairman,\u00a0Ofer\u00a0Amir,\u00a0stated: <\/b><\/p>\n<p><i> &#8216;We are incredibly excited to partner with Galan Lithium on what we believe is one of the most compelling lithium opportunities in <span> 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&#8217; confidence in Galan&#8217;s transformative potential and our shared vision of powering the clean energy revolution. <\/i><\/p>\n<p><i> Our\u00a0investment\u00a0in\u00a0Galan\u00a0reflects our\u00a0disciplined\u00a0approach to\u00a0identifying\u00a0high-quality\u00a0lithium\u00a0assets\u00a0with strong\u00a0fundamentals\u00a0and\u00a0experienced\u00a0management\u00a0teams.\u00a0Galan&#8217;s 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&#8217;s 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.&#8217; <\/i><\/p>\n<p><b> Details of the Placement <\/b><\/p>\n<p> The Company has received binding commitments for a total of 181,818,182 shares at an issue price of <span> A$0.11 <\/span> per share. 90,909,091 options (exercisable at <span> A$0.15 <\/span> with a 3 year expiry from issue date) will also be issued. <\/p>\n<p> The Placement is expected to settle in two\u00a0tranches: <\/p>\n<ul type=\"disc\">\n<li> Tranche Two \u2013 <span> A$10 million <\/span> , 90,909,091 shares and 45,454,545 options (exercisable at <span> A$0.15 <\/span> with a 3 year expiry from issue date), subject to shareholder approval and completion of due diligence. Expected settlement on or around <span> 28 November 2025 <\/span> . <\/li>\n<\/ul>\n<p> The proceeds of the Placement will be utilised to complete Phase 1 construction activities in H2 2025 required\u00a0to\u00a0realise\u00a0first lithium\u00a0chloride\u00a0production\u00a0in\u00a0H1\u00a02026.\u00a0The\u00a0Company notes\u00a0that\u00a0a\u00a0US$\u00a06\u00a0million prepayment facility will be available to the Company under the terms of the offtake and prepayment agreement with Authium Limited ( <b> Authium <\/b> ) (see announcement <u> https:\/\/shorturl.at\/GaU0r) <u> . <\/u><\/u><\/p>\n<p> In light of the current market conditions, the Company decided to pursue the Placement, which was structured at a 21% premium to\u00a0Galan&#8217;s 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<p><b> About\u00a0Hombre\u00a0Muerto West <\/b><\/p>\n<p> HMW is a multi-decade, lithium brine project in <span> 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<p> 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<p> 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<p> Please\u00a0refer\u00a0to\u00a0Mineral Resource\u00a0Statement\u00a0for\u00a0Galan&#8217;s\u00a0Total\u00a0Resources\u00a0of\u00a09.5Mt\u00a0LCE. <\/p>\n<p><b> The Galan\u00a0Board\u00a0has\u00a0authorised\u00a0this\u00a0release. <\/b><\/p>\n<p><u> For further information contact: <\/u><\/p>\n<div>\n<div>\n<table border=\"0\" cellpadding=\"1\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b> COMPANY <\/b><\/span><\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b> MEDIA <\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b> Juan\u00a0Pablo\u00a0(&#8216;JP&#8217;) Vargas <\/b><\/span><\/p>\n<p><span><b> de\u00a0la\u00a0Vega <\/b><\/span><\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b> Matt\u00a0Worner <\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b> Managing\u00a0Director <\/b><\/span><\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b> VECTOR\u00a0Advisors <\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><u> jp@galanlithium.com.au <\/u><\/span><\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span><b><u> mworner@vectoradvisors.au <\/u><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span> + 61 8 9214 2150 <\/span><\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p><span> +61 429 522 924 <\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p><b> About Galan <\/b><\/p>\n<p>Galan Lithium Limited (ASX:GLN) is an ASX-listed lithium exploration and development business. Galan&#8217;s flagship assets comprise two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto Salar in <span> Argentina <\/span> , within <span> South America&#8217;s <\/span> &#8216;lithium triangle&#8217;. Hombre Muerto is proven to host lithium brine deposition of the highest grade and lowest impurity levels within <span> Argentina <\/span> . It is home to the established El Fenix lithium operation, <span> 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 <span> Western Australia <\/span> , just south of the Tier 1 Greenbushes Lithium Mine. <\/p>\n<p><b> About\u00a0Clean\u00a0Elements <\/b><\/p>\n<p> Clean Elements is a private holding company specifically founded to pursue the development of high performing lithium assets in <span> 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( <span> Zurich <\/span> and <span> Geneva <\/span> ), <span><span> Dubai <\/span><\/span> , <span> Hong Kong <\/span> , and <span> Israel <\/span> . <\/p>\n<p> Contact: <\/p>\n<p><b> Ofer\u00a0Amir <br \/><\/b><u> ofer@thecleanelements.com <br \/><\/u> +97254492777 <\/p>\n<\/p>\n<p> View original content:  https:\/\/www.prnewswire.com\/news-releases\/galan-lithium-limited-a20-million-placement-to-strategic-partner-302486923.html <\/p>\n<p> SOURCE Galan Lithium Limited <\/p>\n<\/div>\n<\/p>\n<\/div>\n<p>News Provided by PR Newswire via QuoteMedia<\/p>\n<\/p>\n<div>This post appeared first on investingnews.com<\/div>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&hellip;<\/p>\n","protected":false},"author":1,"featured_media":1705,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts\/1704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/comments?post=1704"}],"version-history":[{"count":0,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts\/1704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/media\/1705"}],"wp:attachment":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/media?parent=1704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/categories?post=1704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/tags?post=1704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}