ASX-listed Galan Lithium has secured a binding commitment for A$20-million from existing shareholder, The Clean Elements Fund, to provide the final construction funding for its lithium project in Argentina. 

At A$0.11 a share, the placement price represents a 21% premium to the last closing price of A$0.091 a share on June 19.

Further, Clean Elements will receive one unlisted option for every two shares issued under the placement, with an exercise price of A$0.15 per option and an expiry date that is three years from the date of issue.

The placement provides the final construction funding solution for Phase 1 (at 4 000 t/y of lithium carbonate equivalent) of the Hombre Muerto West project (HMW), which will see production of lithium chloride concentrate in the first half of 2026.

MD JP Vargas de la Vega said Galan was pleased to receive further support from Clean Elements. "HMW is a world-class-lithium project, offering exceptional scale and grade. the commitment from Clean Elements, priced at a significant premium to our last closing share price, reflects the value proposition provided by Galan," he stated.

"To have executed this funding agreement while facing strong macro headwinds for the lithium 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 promises to be a transformational period for Galan and the team remains fully focused on the creation of significant value for all shareholders.”

Clean Elements chairperson Ofer Amir said the group believed that HMW was one of the most "compelling lithium opportunities in Argentina today". "After extensive evaluation of the Argentinian lithium landscape, HMW stands out as an exceptional world-class asset with the rare combination of scale, grade, and execution capability that positions it to be a major force in the global lithium market.

"This investment represents Clean Elements' confidence in Galan's transformative potential and our shared vision of powering the clean energy revolution," said Amir.