Galan Lithium (ASX:GLN) capital raise announcement

Galan Lithium Limited (ASX:GLN) has announced a capital raising of up to A$25 million, with firm commitments received for a A$12 million placement at A$0.105 per share and a 1 for 4 non-renounceable entitlement offer to raise up to A$13.3 million at the same price. The capital will support the full funding of HMW Phase 1, with the proceeds expected to fund Galan into production, further develop HMW, cover corporate overheads, and provide working capital.

Executive commentary on capital raising

Galan's Managing Director, Juan Pablo (JP) Vargas de la Vega, expressed delight with the support for the Placement and welcomed new investors to the register. He also acknowledged the ongoing support of shareholders and welcomed the participation of Chemphys in the Placement, strengthening the relationship between the companies. Vargas de la Vega highlighted the lower capital intensity Phase 1 development and the planned start to production in the second half of 2025, expressing confidence in the project economics underpinning the HMW development and the future of the lithium market.

Summary of Galan Lithium's capital raise and outlook

Galan Lithium Limited (ASX:GLN) has successfully secured firm commitments for a A$25 million capital raise, comprising a A$12 million placement and a A$13.3 million entitlement offer. The capital will fully fund HMW Phase 1, with the proceeds expected to support the company into production, further develop HMW, cover corporate overheads, and provide working capital. The participation of Chemphys in the Placement strengthens the relationship between the companies. Galan remains confident about the project economics underpinning the HMW development and the future of the lithium market, aiming for production to commence in the second half of 2025.