Galan Lithium Logo

Galan Secures Agreement with Glencore for Offtake & Financing Prepayment Facility for the Hombre Muerto West (HMW) Lithium Project

The Board of Galan Lithium Limited (Galan or the Company) is very pleased to announce that it has signed a binding term sheet with a wholly owned subsidiary of Glencore plc (Glencore) global mining and trading company, for offtake for up to 100% of its premium lithium chloride concentrate from HMW (Marketing Offtake Agreement or MOA) and the offer to provide or facilitate a secured Financing Prepayment Facility (Facility) for US$70 to US$100 million, subject to conditions precedent being met.


  • Binding offtake secured from Glencore, one of the world’s largest global diversified natural resource companies, for lithium chloride and/or lithium carbonate from Phase 1 production (see DFS ASX release 3 July 2023) at HMW
  • Glencore offers to provide or facilitate a Financing Prepayment Facility for US$70 to US$100 million, subject to conditions precedent
  • Offtake with Glencore does not require an export licence
  • The agreement endorses Galan’s low-cost low-risk lithium chloride development strategy to become the next lithium producer in Argentina
  • Discussions for the larger Phase 2 (see DFS ASX release 3 October 2023) HMW development are open and well advanced
  • As previously announced Galan has commenced construction of Phase 1 HMW in September 2023 and remains on track for first pond fill in Q1-2024
  • Commencement of production remains forecast for H1 2025

OFFTAKE AGREEMENT

Glencore will purchase technical grade lithium chloride product from Galan’s high-grade, low- impurity HMW Project in Catamarca Province, Argentina. The offtake commitment does not require Galan to have secured an export licence for its lithium chloride. Glencore will accept offtake for Galan’s lithium chloride to be toll treated into lithium carbonate for sale and export from Argentina.

The binding agreement is for a five (5) year period from commencement of commercial production for 100% of Galan’s Phase 1 production estimated at 5.4kt lithium carbonate equivalent (LCE) in lithium chloride concentrate per annum. The price payable by Glencore will be referenced to a mutually agreed lithium carbonate price index over a quotational period less a marketing fee, discount and penalties (if any).

The agreement is renewable subject to mutual agreement between Galan and Glencore.

FINANCING PREPAYMENT FACILITY

Galan is also delighted to have secured an offer from Glencore to provide or facilitate a binding proposal for the Facility to support funding of Phase 1, which is subject to certain conditions precedent being met including, amongst others, satisfactory due diligence to Glencore’s absolute discretion and draw down under the Facility will only become effective when the MOA and all transaction definitive documentation has been signed subject to Glencore’s satisfaction in its absolute discretion.

Galan believes that the execution of the binding term sheet for the MOA and Facility is a validation of the exceptional quality of the HMW Project and a strong endorsement of the experienced personnel with the requisite niche expertise which Galan has secured to successfully construct and deliver a lithium brine project in Argentina. Moreover, to underscore such confidence in the growth and future of Galan and its HMW Project, Galan and Glencore have agreed that Glencore will have first right to negotiate in respect of marketing and/or financing with regards to the future expansion of the HMW Project for Phase 2.

In parallel and whilst Galan is developing Phase 1 for maiden production at HMW in 1H 2025, the Company is also advancing discussions for the development of Phase 2 at HMW.

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, said:

“We are very delighted to announce Galan’s achievement of this very significant milestone on the path towards commencing commercial production at HMW in H1 2025. The agreement with Glencore is a validation of the quality our world class project and endorses the calibre and experience of Galan’s team. Our agreement with Glencore significantly de-risks our project and we are very well poised to secure finance for Phase 1 of the HMW Project. Importantly, Glencore’s funding assistance via the prepayment facility endorses our lithium chloride concentration strategy to deliver the HMW project, and provide returns to shareholders, in a shorter time frame.

We are today closer to becoming a significant and reliable producer of lithium, and thereafter growing our production in line with the expected rise in demand. Our momentum towards maiden commercial production continually strengthens and we look forward to updating investors on our progress.

We thank and acknowledge the work of our dedicated Board and personnel to reach this critical milestone. As always, we are grateful to our community and government in Argentina for their invaluable support of our development at HMW.”


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

Galan Lithium Limited: A$20 million Placement to Strategic Partner

Galan Lithium Limited: A$20 million Placement to Strategic Partner

 
 

Galan Lithium Limited (ASX:GLN) ( Galan or the Company ) is pleased to announce it has secured a binding commitment for a A$20 million placement ( Placement ) at A$0.11 per share, a 21% premium to the last closing price of A$0.091 as at 19 June 2025 from an existing shareholder, The Clean Elements Fund ( Clean Elements ). Additionally, 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 is subject to Clean Elements' satisfactory completion of due diligence over a period not longer than 77 days. Full completion of the Placement will require shareholder approval which will be sought at a Galan general meeting, expected to be held in early September 2025 .

 

 

News Provided by PR Newswire via QuoteMedia

Keep reading...Show less
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.

Digital hexagons overlay construction site with an excavator and cloudy sky in the background.

Ekin Ober on Why AI Could Be Mining’s Most Valuable Tool Yet

For Ekin Ober, bringing generative artificial intelligence (AI) to the critical metals sector through her work at Aethos Labs wasn’t just about technological innovation — it reshaped how she thinks about strategy and sustainability in mining.

Now a principal at Kinterra Capital, Ober applies that broad, cross-disciplinary lens to investment decisions, emphasizing the importance of digital fluency, stakeholder alignment and long-term viability.

Her experience helps her identify operational bottlenecks and social license challenges early — essential in guiding assets like nickel and copper projects from concept to production.

Keep reading...Show less
Stacks of US$100 bills with upward-pointing wooden arrows.

Chris Berry: The West Must Invest in Refinement Now or Fall Further Behind

China’s grip on the battery metals sector has drawn increasing scrutiny in recent years as nations confront growing concerns around supply chain risk and resource security.

Through a blend of domestic output and aggressive overseas investment, particularly in Africa and South America, Chinese companies now command a significant share of upstream supply.

The country is responsible for roughly 60 percent of global rare earths production and controls over 70 percent of cobalt supply through its stakes in mines across the Democratic Republic of Congo.

Keep reading...Show less
Magnifying glass focusing on the Albemarle website logo.

Albemarle's Commitment to Sustainability Shines in New Report

As global demand for critical minerals intensifies, Albemarle (NYSE:ALB) continues to position itself as a global leader not only in lithium production but also in sustainable practices.

In its newly released 2024 sustainability report, titled “Values-Led, Purpose-Driven,” the company underscores its commitment to reducing its environmental footprint across six continents, supporting global supply chains and promoting human rights across operations.

From cutting freshwater intensity at its Chilean operations by 28 percent to procuring 24 percent of its electricity from renewable sources, Albemarle is striving to grow its energy storage business while keeping carbon emissions flat, as it translates ESG goals into action.

Keep reading...Show less
Metallic battery with a world map etched on it, against a dark background.

3 Key Themes from Fastmarkets' 2025 Lithium Supply & Battery Raw Materials Event

Market volatility, Chinese control, supply chain risk mitigation and financing emerged as some of the most prevalent themes at the 2025 Fastmarket’s Lithium Supply Battery Raw Materials (LBRM) conference in Las Vegas.

The event, which is in its 17th year, drew a crowd of roughly 1000 delegates, industry experts and analysts, to discuss the current landscape and future projections of the battery materials sector.

During his opening remarks, Fastmarkets CEO Raju Daswani highlighted the growth and maturation the battery raw materials sector has experienced.

Keep reading...Show less
Metals Australia (ASX:MLS)

Metals Australia


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

×