PERTH (miningweekly.com) – Lithium brine developer Galan Lithium will raise A$10-million in a share placement to fund work at its Hombre Muerto West lithium project, in Argentina.
The company on Wednesday announced that it has received firm commitments for the placement of 20-million shares, at a price of 50c each. The placement will include a A$4-million contribution by Luxembourg green energy fund Themtacia Future Mobility.
Galan told shareholders that proceeds from the placement, along with the company’s existing cash resources, would be used for the continued enhancement of the Hombre Muerto West project, including well drilling, piloting and resource work, as well as for the initial exploration programme at the Greenbushes South lithium project, in Western Australia.
Galan recently struck a deal with fellow-listed Lithium Australia to acquire an 80% interest in the Greenbushes South lithium project, under which it would issue 1.22-million shares to Lithium Australia to form an unincorporated joint venture (JV).
Galan would further sole-fund the JV expenditure until the completion of a prefeasibility study.