Galan Lithium Limited (ASX:GLN) Secures A$20 Million Placement with Clean Elements Fund
Placement Details
Galan Lithium Limited (ASX:GLN) has secured a binding commitment for a A$20 million placement at A$0.11 per share, representing a 21% premium to the last closing price of A$0.091 as of 19 June 2025, from 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 three years from the date of issue.
Use of Proceeds
The Placement provides the final construction funding for Phase 1 (4ktpa LCE) of Galan’s Hombre Muerto West project in Argentina, targeting the production of lithium chloride concentrate in H1 2026. Proceeds will be utilised to complete Phase 1 construction activities in H2 2025. The Company also secured a US$6 million prepayment facility under the terms of the agreement with Authium Limited.
Project Overview
Hombre Muerto West (HMW) is a lithium brine project in Argentina, featuring a 4ktpa LCE operation with a projected 40-year life. Galan plans a phased scaling approach to 60ktpa at the conclusion of Phase 4, mitigating funding and execution risks. HMW’s lithium chloride is a key component for lithium iron phosphate (LFP) batteries, the dominant battery product globally.
Executive Comments
Managing Director, Juan Pablo (JP) Vargas de la Vega, stated, “We are extremely pleased to receive further support from Clean Elements. HMW is a world-class lithium project, offering exceptional scale and grade. This commitment from Clean Elements, priced at a significant premium to our last closing share price, reflects the value proposition provided by Galan. To have executed this funding agreement whilst facing strong macro headwinds for the lithium industry is a huge achievement for Galan and further validates the unique attributes of HMW. With a clear pathway to first concentrate production, this support positions Galan to focus on execution. The next 12 months promise to be a transformational period for Galan and the team remains fully focussed on the creation of significant value for all shareholders.”
Clean Elements’ Chairman, Ofer Amir, added, “We are incredibly excited to partner with Galan Lithium on what we believe is one of the most compelling lithium opportunities in Argentina today. After extensive evaluation of the Argentinian lithium landscape, HMW stands out as an exceptional world-class asset with the rare combination of scale, grade, and execution capability that positions it to be a major force in the global lithium market. This investment represents Clean Elements’ confidence in Galan’s transformative potential and our shared vision of powering the clean energy revolution. Our investment in Galan reflects our disciplined approach to identifying high-quality lithium assets with strong fundamentals and experienced management teams. Galan’s impressive resource base of 9.5 Mt LCE, combined with its low-cost position in the first quartile globally and proven operational track record in the Hombre Muerto Salar, aligns perfectly with our investment criteria. We were particularly impressed by Galan’s strategic partnership with Authium, which enhances project economics through innovative processing technology while securing offtake agreements that de-risk the path to production. We look forward to supporting Galan beyond Phase 1 as they execute their long term production growth plan towards 60 ktpa LCE.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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