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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 Companyâs 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.
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%.
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