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Highlights
- Galan Lithium raises $10M for HMW Phase 1 construction
- Tesoro Gold seeks $10M to support Ternera drilling
- Resource sector sees fresh capital activity on ASX
The Australian resource sector witnessed fresh funding activity early this week, with two key players—Galan Lithium (GLN) and Tesoro Gold (TSO)—announcing their respective capital raisings, each targeting $10 million to fund strategic development projects.
Galan Lithium (ASX:GLN) is looking to secure funding through a combination of a share placement and a share purchase plan, pricing new shares at 11¢ each. This offer comes at an 8.3% discount to the last traded price, as the company aims to channel the proceeds toward construction costs for Phase 1 of its Hombre Muerto West (HMW) lithium project in Argentina. The capital raise follows shortly after Galan revealed it had received an unsolicited bid from Zhejiang Huayou Cobalt Co and Renault Group for its HMW and Candelas lithium projects—an offer valued at $252 million (USD $150 million).
While the company disclosed this potential acquisition interest quietly, market participants have been closely watching for its next steps. Sources indicate that Petra Capital had been gauging institutional interest for a larger raise, potentially targeting up to $35 million. The current raise, however, focuses on advancing the initial phase of HMW, a project seen as a significant contributor to the global lithium supply chain.
Meanwhile, Tesoro Gold (ASX:TSO) has launched its own equity raising initiative, seeking $10 million via an institutional placement. The offer is priced at 24¢ per share, representing a 14.3% discount to the company’s most recent closing price. The capital will support drilling programs at the Ternera prospect, part of the El Zorro Gold Project in Chile. Tesoro has been advancing exploration efforts in the region, aiming to build on recent discoveries and expand its mineral resource base.
The announcements arrive as part of a broader surge in activity across the resource-focused segment of the ASX. On the same day, Canadian-listed Robex Resources launched its IPO and a $120 million raise, further underlining growing investor appetite for companies operating in the mining and exploration space.
With lithium and gold continuing to capture attention due to strong demand fundamentals, these funding moves signal ongoing confidence in the development pipeline of emerging resource players on the ASX.
