The Conversation (0)
Highlights:
- All conditions in relation to the $20 million placement to Clean Elements Fund have been satisfied.
- Due diligence undertaken by Clean Elements Fund validates the standing of Hombre Muerto West ( HMW ) as a world class lithium project, offering exceptional scale and grade.
- Galan is now fully funded to complete the construction of Phase 1 at HMW (at 4ktpa LCE) with first production of lithium chloride concentrate planned during H1 2026.
Galan Lithium Limited (ASX: GLN,OTC:GLNLF) ( Galan or the Company ) is pleased to announce that all conditions relating to the $20 million share placement ( Placement ) to the Clean Elements Fund ( Clean Elements ) have now been completed.
The Placement, which was undertaken at a significant premium to the prevailing share price when originally announced, was subject to certain conditions including shareholder approvals (received at a General Meeting held on Friday, 22 August 2025 ) as well as the satisfactory completion by Clean Elements of technical and legal due diligence in respect of the Company and HMW in Argentina.
Clean Elements has advised that all conditions to the Placement have been satisfied. As such, the Placement will now proceed to settlement, providing Galan with the funding required for the finalisation of the HMW Phase 1 construction over the remainder of the 2025 calendar year, with first production of lithium chloride concentrate scheduled for H1 2026.
Settlement will take place in two equal tranches of $10 million . Tranche 1 settlement will occur within the next 5 business days and Tranche 2 of the Placement will settle no later than 22 November 2025 , in line with the timing set out in the relevant shareholder approval.
Managing Director, Juan Pablo Vargas de la Vega , commented: "With the support of Clean Elements, Galan now has the funding certainty to complete Phase 1 construction at HMW and is firmly on track to deliver first lithium chloride concentrate production in H1 2026.
The due diligence undertaken by Clean Elements Fund has confirmed, what we at Galan already know – HMW is an exceptional lithium project, combining substantial scale and grade with execution capability that places it among the best globally.
The team at Galan remains focussed on advancing project delivery at HMW and we look forward to creating significant long-term value for shareholders as we progress towards production."
Clean Element's Chairman, Ofer Amir , commented: " We are thrilled to confirm a binding and unconditional commitment to complete both tranches of the placement—an outcome that underscores strong confidence in Galan's strategic direction.
Our specialist lithium brine adviser highlighted that HMW is the premier lithium brine resource globally. HMW's brine is the highest grade in Argentina with the lowest impurity profile. It also contains significantly less magnesium and calcium than the levels found in the Salar de Atacama in Chile which, when combined with HMW's high lithium grades, gives rise to the highest lithium recoveries in the lithium brine sector to date.
This exceptional resource quality enables a low-cost, evaporation process—positioning Galan to become a high-margin, globally competitive lithium producer. In our view, Galan will not just be participating in the lithium market; it will be setting a new benchmark."
The Galan Board has authorised this release.
For further information contact:
| COMPANY | MEDIA |
| Juan Pablo ("JP") Vargas de la Vega | Matt Worner |
| Managing Director | Vector Advisors |
| + 61 8 9214 2150 | +61 429 522 924 |
View original content: https://www.prnewswire.com/news-releases/galan-lithium-limited-successful-due-diligence-completed---20m-placement-to-proceed-302537458.html
SOURCE Galan Lithium Limited
