Galan Lithium

Galan Completes Strongly Supported A$31.5 Million Institutional Placement To Accelerate Development Of Its Strategic Lithium Projects

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has received firm commitments to raise A$31.5 million through an over-subscribed placement to institutional, sophisticated and professional investors (Placement).


Highlights:

  • Firm commitments received to raise A$31.5 million through an institutional placement priced at A$1.05 per share
  • Strong support received from domestic and offshore institutional and sophisticated investors
  • Placement funds will be used to purchase long lead items for the LCE pilot plant and the Stage 2 DFS at Hombre Muerto West, whilst providing contingency funding for additional Greenbushes South work, further exploration and production well drilling.
  • Galan to undertake Share Purchase Plan of up to approximately A$5 million for existing eligible shareholders
  • Galan well-funded with pro-forma cash position of approximately A$50 million on completion of the Placement

The Placement provides the Company with significant flexibility with respect to its ongoing capital expenditure requirements at Hombre Muerto West (HMW), Candelas and Greenbushes South. In particular, proceeds from the Placement will be applied to accelerate:

  • Purchase of long lead items in preparation for stage 1 (4ktpa LCE) including; liners, piping and lime plant;
  • Prepayment for earthworks contractor;
  • Workers camp expansion;
  • Stage 2 DFS and production expansion studies;
  • Further exploration and production well drilling;
  • Contingency for extra work at Greenbushes; and
  • General working capital.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

“This is an exciting time to be involved in the Galan story. I wish to thank all the placement participants, old and new, who have strongly supported the Galan production plan that will take it from an initial smaller scale lithium producer to a big 60ktpa player. I also encourage all our loyal shareholders to get on board and participate in the entitlement issue which will get underway later this week.”

Placement

Under the Placement, the Company will issue 30 million new fully paid ordinary shares in the Company at A$1.05 per share (New Shares), raising a total of A$31.5 million before costs, to institutional, sophisticated and professional investors.

The issue price of A$1.05 per share, represents a 12.5% discount to the last closing price of A$1.200 on 17 May 2023 and 9.8% discount to the 10 day VWAP of A$1.163.

New Shares will be issued under the Company’s existing placement capacity under ASX Listing Rule 7.1 and are expected to be issued on Monday 29 of May 2023.

Canaccord Genuity (Australia) Limited acted as Sole Lead Manager and Bookrunner to the Placement.

Share Purchase Plan

In addition to the Placement, Galan intends to undertake a non-underwritten Share Purchase Plan (SPP) targeting to raise up to approximately A$5 million, with the Company retaining the right to accept oversubscriptions at its discretion. Under the SPP, eligible existing shareholders who were on the register at the record date, will be offered the opportunity to subscribe for up to A$30,000 of New Shares in the Company at an issue price of A$1.05 per New Share (being the same price as the Placement).

Further information on the SPP including the terms and conditions of the SPP and the proposed timetable will be set out in a SPP Offer Booklet that will be released on ASX and provided to eligible shareholders in the coming days.

New Shares issued under the Placement and SPP will rank equally with the Company’s existing fully paid ordinary shares.


Click here for the full ASX Release

This article includes content from Galan Lithium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

GLN:AU
Galan Lithium

Galan Lithium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

The Conversation (0)
Galan Lithium

Galan Lithium


Keep reading...Show less

Developing high-grade lithium brine projects in Argentina

HMW Phase 1 Funding & Offtake Secured with US Based Partner

HMW Phase 1 Funding & Offtake Secured with US Based Partner

Galan Lithium (GLN:AU) has announced HMW Phase 1 Funding & Offtake Secured with US Based Partner

Download the PDF here.

Lithium Africa

Lithium Africa

Keep reading...Show less
Rio Tinto logo on a dark screen with stock chart background.

Rio Tinto Partners with Codelco to Develop Lithium Project in Chile

Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO)said on Monday (May 19) that it has signed binding agreements with Corporación Nacional Del Cobre de Chile (Codelco) to develop and operate a high-grade lithium project.

The asset is located in the Salar de Maricunga, a large lithium-containing resource base in Atacama, Chile. Its brine is said to have one of the highest average grades of lithium content in the world.

According to Rio Tinto, it will acquire a 49.99 percent interest in the company Salar de Maricunga, through which Codelco holds its licenses and mining concessions related to the resource base.

Keep reading...Show less
Lithium periodic symbol highlighted on periodic table.

European Metals Receives US$36 Million Grant for Cinovec Lithium-Tin Project

European Metals Holdings (ASX:EMH,LSE:EMH,OTCQX:EMHXY) confirmed the approval of a US$36 million Just Transition Fund (JTF) grant for its Cinovec lithium-tin project on Monday (April 28).

The JTF is run by the European Commission, supporting projects that align with the economic diversification and reconversion of concerned territories such as Bulgaria, the Czech Republic and Hungary.

JTF states on its website that the number of supported projects varies annually, depending on the proposals. The grant also forms part of the European Union’s efforts to transition to clean energy and achieve climate goals.

Cinovec was chosen as it was designated as a strategic project under the Critical Raw Minerals Act in March, underlining its importance in Europe’s journey toward securing stable supply of critical raw minerals. It was also declared a strategic deposit by the Czech government, a designation that accelerates certain permitting processes.

"The grant funding will be utilised to fast track a number of critical path items with regards to the Cinovec Project,” commented European Metals Executive Chair Keith Coughlan in a press release. “This confirmation builds on recent project momentum and is another clear indicator of the support the European Union and the Czech government is willing to provide to assist in getting Cinovec into production in the timeliest manner possible."

Keep reading...Show less
Galan Lithium

Galan Lithium Investor Kit

  • Corporate info
  • Insights
  • Growth strategies
  • Upcoming projects

GET YOUR FREE INVESTOR KIT

Latest Press Releases

Related News

×