Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has received firm commitments to raise A$50.0 million through a two-tranche placement to institutional, sophisticated and professional investors (Placement).
The Placement provides the Company with significant flexibility with respect to its ongoing capital expenditure requirements at Hombre Muerto West (HMW), Candelas and Greenbushes South. In particular, proceeds from the Placement will be applied to accelerate:
- Drilling activities at HMW to establish well fields for production and convert existing Resources to Reserves;
- Drilling activities at Candelas to convert existing Resources to Reserves;
- Ongoing exploration activities at Galan’s projects at HMW, Candelas and Greenbushes South;
- Completion of feasibility studies at HWM and Candelas; and
- General working capital
Canaccord Genuity (Australia) Limited acted as Lead Manager and Bookrunner to the Placement.
- Galan has received firm commitments to raise A$50.0 million through a two- tranche institutional placement priced at A$1.15 per share
- Placement funds will be used to accelerate Galan’s existing Hombre Muerto West, Candelas and Greenbushes South Projects
- Tranche One of the placement will raise A$29.8 million and was well supported by high-quality domestic and offshore institutions
- Tranche Two of the placement, which is subject to Galan shareholder approval, will raise A$20.2 million and was subscribed for by two institutional investors with a track record of successful investment in the natural resources sector
Upon settlement of both tranches of the placement, Galan will have a cash balance of approximately A$65.1 million (before costs)
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