Galan Lithium Completes US$25 Million Raise for Lithium Brine Project Advancement

2 min read | October 21, 2024 03:29 AM PDT | By Team Kalkine Media

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Galan Lithium Completes US$25 Million Raise for Lithium Brine Project Advancement — Image source: Shutterstock

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Highlights

Galan Lithium Ltd has successfully raised US$25 million through a share placement and entitlement offer to advance the Hombre Muerto West (HMW) Lithium Brine Project in Argentina.

The company has adopted a lower capital intensity approach for its Phase 1 development, aiming for an initial production rate of 4,000 tonnes per annum of lithium carbonate equivalent (LCE).

The HMW Project boasts a significant mineral resource estimate of 8.6 million tonnes at 859 milligrams per litre of lithium carbonate equivalent, positioning it favorably within the global lithium cost curve.

Galan Lithium Ltd (OTC:GLNLF) has made significant strides in advancing the Hombre Muerto West (HMW) Lithium Brine Project in Argentina, recently securing US$25 million through a combination of a share placement and an entitlement offer. The entitlement offer, which raised US$13.3 million, was fully subscribed, and Chengdu Chemphys Chemical Industry contributed US$3 million towards the US$12 million placement, pending the completion of definitive offtake agreements.

In response to current market conditions, the board has opted for a lower capital intensity strategy for the initial Phase 1 development, targeting a lithium carbonate equivalent production rate of 4,000 tonnes per annum. Managing Director Juan Pablo (JP) Vargas de la Vega emphasized that the funds raised will facilitate this development and support the planned production commencement in the latter half of 2025. He expressed confidence in the project’s economic viability and the promising outlook for the lithium market.

The HMW Project is notable for its mineral resource estimate of 8.6 million tonnes at 859 milligrams per litre lithium carbonate equivalent, with 83% of the resource classified in the higher confidence measured and indicated categories. This positions the project in the bottom quartile of global lithium projects regarding cost efficiency and CO2 emissions, alongside a projected net present value (NPV8) of approximately US$2 billion.

Galan Lithium plans to execute the HMW development in two phases, with the first phase focused on producing 4,000 tonnes per year of LCE, followed by a second phase aimed at ramping up production to 5,400 tonnes as market conditions permit. The company is on track to initiate production next year, marking a pivotal step in its growth trajectory within the lithium sector.

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