West Perth-based Galan Lithium has secured funds to continue exploring its Greenbushes South project in WA and its Argentinian assets.
West Perth-based Galan Lithium has secured funds to continue exploring its Greenbushes South project in Western Australia and its Argentinian assets.
Galan says it has received commitments to raise $50 million from a share placement – priced at $1.15 per share and led by Canaccord Genuity – to fund ongoing drilling activities at its Greenbushes, Hombre Muerto West, and Candelas projects.
Greenbushes is a joint venture between Galan and Lithium Australia, located just three kilometres from Tianqi Lithium and IGO’s Greenbushes mine in the South West.
Galan acquired an 80 per cent interest in the project in January.
Today, managing director Juan Pablo Vargas de la Vega said a number of high-quality institutions had participated in the raise.
“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,” he said.
Galan will issue almost 26 million shares through tranche one of the placement to raise $29.8 million and 17.6 million shares through tranche two to raise $20.2 million, with settlement is expected in late September.
The offer represents a 10 per cent discount to the company’s last closing price of $1.28 per share (on August 11).
Galan said Havelock Mining Investments remained a substantial shareholder in the company.
Its shares were down 6.3 per cent at 3:59pm AEST to trade at $1.20.