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Highlights

  • Galan Lithium receives binding commitment for $20 million placement at a 21% premium to last closing price.

  • Funds to support final construction for Phase 1 of Hombre Muerto West project in Argentina.

  • Placement includes issuance of 181.8 million shares and 90.9 million options, subject to due diligence and shareholder approval.

Galan Lithium Limited (ASX:GLN) has announced a binding commitment for a $20 million capital placement from existing shareholder, The Clean Elements Fund, marking a significant step toward the final construction phase of its flagship Hombre Muerto West (HMW) lithium project in Argentina.

The placement was secured at $0.11 per share, representing a 21% premium to Galan’s last closing price of $0.091 on 19 June 2025. As part of the agreement, Clean Elements will also receive one unlisted option for every two shares issued under the placement. Each option will have an exercise price of $0.15 and will expire three years from the issue date.

The placement is contingent upon Clean Elements' satisfactory completion of due diligence, which is to be concluded within 77 days. Full completion of the placement also requires shareholder approval, which Galan intends to seek at a general meeting scheduled for early September 2025.

Placement Structure and Use of Funds

The placement will result in the issue of 181,818,182 new shares and 90,909,091 unlisted options. The structure is divided into two tranches:

  • Tranche One:
    $10 million for the issue of 90,909,091 shares under ASX Listing Rule 7.1A and 45,454,545 options under Listing Rule 7.1. Settlement is expected to occur shortly after shareholder approval and completion of due diligence.

  • Tranche Two:
    $10 million for the issue of 90,909,091 shares and 45,454,545 options, subject to shareholder approval and satisfactory due diligence. Settlement is anticipated on or around 28 November 2025.

Proceeds from the placement will be allocated to the construction activities of Phase 1 of the Hombre Muerto West project, which aims to produce 4,000 tonnes per annum of lithium chloride concentrate. Construction is scheduled for the second half of FY2025, with initial production targeted for the first half of 2026.

Funding Complements Existing Prepayment Facility

In addition to the placement, Galan notes that it has access to a US$6 million prepayment facility through its offtake and prepayment agreement with Authium Limited. This facility remains available to the Company and further supports its financial readiness to complete the Phase 1 development of the HMW project.