Galan raises A$40m to fund Hombre Muerto expansion
Lithium developer Galan Lithium has secured A$40-million through an institutional placement to support a 30% expansion of Phase 1 production at its Hombre Muerto West (HMW) project in Argentina.
Galan has received firm commitments to raise A$40-million, before costs, at an issue price of A$0.41 a share, representing a 2% premium to the five-day volume-weighted average price.
In addition, company directors have committed to subscribe for a further A$1-million on the same terms, subject to shareholder approval.
The placement was strongly supported by major shareholder Clean Elements Fund, as well as global institutional and sophisticated investors.
Proceeds from the capital raising, together with existing cash reserves, will be used to complete Phase 1 construction activities, expand planned lithium carbonate equivalent (LCE) production capacity from 4 000 t/y to 5 200 t/y, advance exploration at Greenbushes South and provide working capital.
Phase 1 construction at Hombre Muerto West is continuing, with first production targeted for the first half of 2026.
The company said first lithium chloride concentrate production from an existing inventory of about 9 500 t of LCE in evaporation ponds also remains targeted for the first half of 2026.
MD Juan Pablo Vargas de la Vega said improving lithium market conditions had created an opportunity to accelerate growth.
“An accelerated recovery in lithium prices has provided Galan with an opportunity to expand HMW Phase 1 production capacity by 30%. Undertaking a Phase 1 expansion at this time will realise operational synergies for Galan, specifically saving on equipment and contractor mobilisation costs and cost savings in procurement."
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