PERTH (miningweekly.com) – ASX-listed Galan Lithium has completed a A$50-million institutional placement to accelerate work at its Hombre Muerto West (HMW), Candelas and Greenbushes South projects, in Argentina.
The company will raise an initial A$29.8-million in a first tranche placement, issuing some 25.9-million shares at a price of A$1.15 each under the company’s existing placement capacity.
The issue price represented a 10.2% discount to Galan’s closing price on August 11, and a 1% discount to the company’s 15-day volume weighted average share price.
A further 17.6-million shares would be issued in a second tranche placement, which will be subject to shareholder approval at a meeting scheduled for late September, to raise a further A$20.2-million.
“We are delighted to announce the completion of the placement which has enabled us to introduce a number of high quality institutions to Galan’s register. This represents a significant milestone in the history of the company and the recognition from these leading investors provides significant external validation for Galan’s extensive portfolio of strategic lithium projects,” said MD Juan Pablo Vargas de la Vega.
“I would like to thank all new and existing shareholders for their ongoing support and look forward to accelerating the development of Galan’s projects at a particularly exciting time for the industry.”
Galan recently confirmed that the production rate at its HMW project could increase up to 25 000 t/y of lithium carbonate equivalent, up from the previous 20 000 t/y assessed in the preliminary economic assessment.