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A$20 Million Placement to Strategic Partner
Galan Lithium Secures Funding to Propel Lithium Project in Argentina
In an increasingly electrified world, securing reliable sources of lithium is paramount. Galan Lithium Limited has announced a significant financial milestone, enabling its ambitious Hombre Muerto West (HMW) project in Argentina to advance. The firm aims to produce lithium chloride concentrate by the first half of 2026, positioning itself as a formidable player in the global lithium landscape.
Key Highlights of the Funding Agreement
Galan Lithium has successfully arranged a placement that provides necessary construction funding for Phase 1 of the HMW project, which targets a production capacity of 4,000 tons per annum (ktpa) of lithium carbonate equivalent (LCE). This funding comes at a time of uncertainty in the lithium market, reflecting both the project’s strong fundamentals and shareholder confidence.
Leadership Perspectives
Managing Director Juan Pablo Vargas de la Vega shared his enthusiasm: “We are thrilled to have the backing of Clean Elements. HMW is not just another lithium project; it is a world-class asset characterized by exceptional scale and grade. This investment reinforces our commitment to delivering value, especially given the current macroeconomic challenges facing the industry.”
Ofer Amir, Chairman of Clean Elements, echoed these sentiments: “We view our partnership with Galan as one of the most promising opportunities in Argentina’s lithium sector. Our investment underscores the strategic alignment between our goals and Galan’s potential to significantly impact the clean energy market.”
Investment and Economic Rationale
The placement includes binding commitments to issue approximately 181.8 million shares at A$0.11 per share, along with 90.9 million options, aiming to accumulate a total of A$20 million. These funds will significantly bolster Galan’s balance sheet, paving the way for the next stages of construction and production development.
Tranche Structure of the Placement
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Tranche One: A$10 million, encompassing 90.9 million shares and 45.4 million options, expected to settle shortly after due diligence.
- Tranche Two: A$10 million dedicated to similar share and option issuance, pending shareholder approval and scheduled for settlement around November 28, 2025.
This strategic equity raise is designed to not only minimize the risks tied to debt financing—especially in a challenging economic environment—but also to strengthen Galan’s operational capabilities.
Overview of Hombre Muerto West
The Hombre Muerto West project stands out as a multi-decade lithium brine endeavor located within South America’s renowned "lithium triangle." The initial phase targets a production capacity of 4 ktpa, producing a lithium chloride concentrate—a vital component in lithium iron phosphate (LFP) batteries that are transforming the energy storage market.
In subsequent phases, Galan plans to scale production to 60 ktpa, a strategy that reduces both funding and execution risks while ensuring ongoing operational enhancements.
The Competitive Edge of HMW
HMW benefits from advantageous geological attributes and cost-effective production processes. Positioned within the first quartile of global lithium production, Galan projects lower capital intensity compared to hard rock lithium mining, which has growth potential amid increasing global demand for cleaner energy solutions.
Conclusion: A Bright Future Ahead
As Galan Lithium progresses with its Hombre Muerto West project, the financial backing from Clean Elements represents not just an investment but a shared belief in the transformative power of lithium in the clean energy sector. With a commitment to operational excellence and sustainable practices, Galan is poised to play a crucial role in the future of global lithium supply, aligning with the world’s shifting energy needs.
For further updates on this evolving story and the competitive landscape of lithium production, stay tuned.