Galan Lithium Limited has obtained solid commitments to fund A$31.5 million through an oversubscribed placement to institutional, sophisticated, and professional investors (Placement).
Hombre Muerto West (HMW), Candelas, and Greenbushes South capital expenditures are greatly facilitated by the Placement. Placement profits will accelerate:
- Purchase of long-lead components in preparation for stage 1 (4ktpa LCE), such as liners, pipelines, and lime plant;
- Payment in advance to the earthworks contractor;
- Expansion of workers’ camps;
- Studies on stage 2 DFS and production expansion;
- Drilling for additional exploration and production wells;
- Provision for more work at Greenbushes; and
- General working capital.
“This is an exciting time to be involved in the Galan story. I wish to thank all the placement participants, old and new, who have strongly supported the Galan production plan that will take it from an initial smaller scale lithium producer to a big 60ktpa player. I also encourage all our loyal shareholders to get on board and participate in the entitlement issue which will get underway later this week,” Galan Managing Director Juan Pablo Vargas de la Vega said.
The Company will issue 30 million new fully paid ordinary shares in the Company at A$1.05 per share (New Shares) as part of the Placement, generating a total of A$31.5 million before costs from institutional, sophisticated, and professional investors.
New Shares will be issued using the Company’s current placement capacity under ASX Listing Rule 7.1 on Monday, 29 May 2023.
Canaccord Genuity (Australia) Limited served as the Placement’s Sole Lead Manager and Bookrunner.
In addition to the Placement, Galan plans to conduct a non-underwritten Share Purchase Plan (SPP) to raise up to A$5 million, with the Company retaining the right to accept oversubscriptions at its discretion. The SPP allows qualified existing shareholders who were on the register on the record date to subscribe for up to A$30,000 of New Shares in the Company at an issue price of A$1.05 per New Share (the same price as the Placement).
Further information on the SPP, including the terms and conditions and anticipated timeframe, will be included in an SPP Offer Booklet, which will be issued on ASX and sent to eligible shareholders in the coming days.
