Galan Lithium has secured a $50 million placement to progress its lithium projects in Australia and Argentina.
Galan’s entire project portfolio will be advanced with the funding, including the Greenbushes south project in Western Australia, and the Hombre Muerto West and Candelas lithium projects in Argentina.
The funds will be raised through a two-tranche placement at $1.15 per share.
Tranche one will raise $29.8 million, and is supported by domestic and international institutions.
Galan stated that tranche two is subject to shareholder approval and will raise $20.2 million which received commitments from two institutional investors with previous experience in the resources sector.
“We are delighted to announce the completion of the placement which has enabled us to introduce a number of high-quality institutions to Galan’s register,” Galan managing director Juan Pablo said.
“This represents a significant milestone in the history of the company and the recognition from these leading investors provides significant external validation for Galan’s extensive portfolio of strategic lithium projects.
“I would like to thank all new and existing shareholders for their ongoing support and look forward to accelerating the development of Galan’s projects at a particularly exciting time for the industry.”
The placement will deliver drilling activities at Hombre Muerto West to deliver well fields for production.
It will also fund drilling at Candelas to convert its resources to reserves, plus ongoing exploration activities across all of Galan’s projects.
Galan will have a cash balance of around $65.1 million after both tranches are settled.
The Greenbushes south project is a joint venture between Galan (80 per cent) and Lithium Australia (20 per cent).
It is located 15 kilometres south of the Greenbushes mine, which is the world’s largest operating lithium mine.
Lithium prices are currently on the rise due to increased demand from battery and electric vehicle manufacturers.