Galan Lithium proceeds with $13M financing for Argentina project

me-metals: 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.

According to me-metals cited from mining.com, 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.

The due diligence by Clean Elements – an existing shareholder – has confirmed HMW is “an exceptional lithium project, combining substantial scale and grade with execution capability that places it among the best globally,” he added.

Last 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.

source: mining.com