Galan Lithium Updates On Drillhole C-03-19 Completion And $4 Million Share Placement

Galan Lithium Updates On Drillhole C-03-19 Completion And $4 Million Share Placement

Galan Lithium Limited (ASX: GLN) is in the business of exploration, having interest in lithium exploration. It has several lithium exploration projects with 100% interest. All these projects are located within the South American Lithium Triangle in Argentina. Recently the company started drilling at Candelas and confirmed the presence of thick, high-grade lithium-bearing brines in the first hole. Candelas is a 15km long by 3-5km structurally controlled pull apart basin, infilled with sediments hosting brines.

Today, the company announced completion of Drillhole C-03-19 to a depth of 430m (basement at 398m) at Candelas Lithium Brine Project. The results indicate highly conductivity levels from 183 to > 200mS/cm. The company is expected to begin fourth Drillhole C-04-19 shortly. The company is also awaiting further permits of additional Drillholes beyond the 5 holes approved by the authorities.

On 9th April 2019, the company announced that it has received commitments to raise $4,000,000 of gross proceeds via a share placement to professional and sophisticated Australian and American investors.

Under the placement, a total of 14,545,455 shares will be issued at an issue price of $0.275 per share from the Company’s available issuing capacity under ASX Listing Rules 7.1 and 7.1A. A total of 3,271,456 shares will be issued under Listing Rule 7.1, and the remaining 11,273,999 shares will be issued under Listing Rule 7.1A.

The proceeds from the share placement will enable the company to carry on with the first drilling program at Candelas channel in Argentina, start the primary resource work and working capital.

The Managing Director of the company, Juan Pablo Vargas de la Vega stated they are pleased with such a response from the investors who will now join the existing shareholders and participate in the success the company is looking to achieve through ongoing exploration at the Hombre Muerto Lithium Project.

Sponsored ad by Kalkine

With respect to this news, the company requested the Australian Stock Exchange (ASX) on 5th April 2019 to halt the trading in the listed securities of the company. The trading halt was meant to be uplifted on the commencement of the trading session on 9th April 2019 or when the company releases the capital raising announcement to the market, whichever is earlier. The securities resumed trading on 9 April.

Recently there has been a change in the shareholding pattern of the company by the director Christopher Chalwell. The director bought 50,000 fully paid ordinary shares of the company with indirect interest on 26th March 2019. The total value of the interest acquired was $12,323, and the deal was done through on market trade. The number of securities held by the director after the change include 300,000 fully paid ordinary shares of direct interest and 2,211,402 fully paid ordinary shares of indirect interest. He also holds 750,000 unlisted options which are expiring at 29/11/19 and exercisable at $0.15.

On 11th March 2019, the company declared its drilling update for the Argentina project and the new high-grade discovery at Candelas project was announced on 13th February 2019.

The company has a current market valuation of A$42.41 million with 113.1 million outstanding shares. On the technical front, the stock shot up by more than 15% and settled the trading session at A$0.375 after making the intraday high of A$0.380 as of 9th April 2019.

Today, 10 April, the stock is trading at A$0.365, down 2.77% (As at 1:20 PM AEST). In the last six months, the stock has delivered a return of 17.19%, while the YTD return stands at 38.9%.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report


Please enter your comment!
Please enter your name here