Galan Lithium proceeds with $13M financing for Argentina project

Galan Lithium (ASX: GLN) said on Monday it is proceeding with a proposed A$20 million ($13 million) private placement for its Hombre Muerto West (HMW) lithium project in Argentina following the completion of due diligence by The Clean Elements Fund.As previously announced on June 20, Clean Elements will purchase nearly 182 million of Galan’s shares at a price of A$0.11 each, representing a 21% premium at the time. The purchase will be made in two equal tranches of A$10 million, with the first closing within five business days and the second tranche closing no later than Nov. 22.At market close Monday, the stock traded at A$0.14 apiece, giving the Australian lithium developer a market capitalization of A$135 million ($87.5 million).The proceeds are expected to fund the Phase 1 construction activities at the HMW project in Catamarca province, which is targeting a 4,000-tonne-per-annum lithium carbonate equivalent operation capable of producing a 6% lithium chloride concentrate product.First output is scheduled for the first half of 2026, with a projected mine life of 40 years over four phases. Upon completing the ramp-up, its production capacity would rise to 6,000 tonnes per annum.First production on track“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,” Galan’s managing director Juan Pablo Vargas de la Vega said in a press release.Clean Elements’ due diligence has confirmed HMW is “an exceptional lithium project, combining substantial scale and grade with execution capability that places it among the best globally,” he addedLast month, the $217 million HMW project was approved for the new incentives program in Argentina known as RIGI (Régimen de Incentivo para Grandes Inversiones), which provides a reduced corporate income tax rate of 25% and fiscal stability for 30 years. It is the sixth project to be accepted into the program.“This is a major milestone for Galan that will further strengthen HMW’s global competitive position as a future low-cost producer,” de la Vega commented in a July 28 press release..Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com