#Australia #Perth #Hombre Muerto #Galan Lithium #Clean Elements

Galan Lithium Limited Advances with Strategic Placement

Galan Lithium Limited (ASX: GLN), a leading player in the lithium market, has made significant strides by successfully completing all conditions for a $20 million share placement. This decisive move, in collaboration with Clean Elements Fund, will bolster the company's efforts in advancing the Hombre Muerto West (HMW) lithium project in Argentina.

The company’s Managing Director, Juan Pablo Vargas de la Vega, expressed enthusiasm about this development, highlighting the importance of the funding in enabling the completion of Phase 1 of the HMW project. With first production of lithium chloride concentrate scheduled for the first half of 2026, the funds from the placement will be utilized to ensure the project remains on track.

Placement Details

The $20 million share placement was structured into two equal tranches of $10 million each. Notably, the placement was executed at a significant premium over the company's previous share price, reflecting strong confidence from investors. The prerequisites included obtaining shareholder approvals, which were secured during a General Meeting held on August 22, 2025.

Key to the success of this placement was the thorough due diligence conducted by Clean Elements Fund, which validated HMW’s reputation as an exceptional lithium project—a designation that places it at the forefront of global lithium resources. This assessment reassured investors of the project's scale, quality, and market potential.

Why HMW Stands Out

The HMW project is characterized by its outstanding lithium brine quality, possessing the highest grade in Argentina and a remarkably low impurity profile. This advantageous composition enables a more efficient and cost-effective evaporation process, essential for lithium extraction. As detailed by Clean Element's Chairman, Ofer Amir, the project's brine contains significantly lower amounts of magnesium and calcium than seen in other leading lithium regions like Chile's Salar de Atacama, which further enhances its recovery rates.

Galan's ability to produce lithium at a competitive price positions the company to not just compete in the market but to set new standards. This sentiment is echoed in Vargas de la Vega's acknowledgment of the team's commitment to maximizing shareholder value as the project progresses.

Future Prospects

Looking ahead, Galan Lithium is firmly focused on expediting project delivery at Hombre Muerto West. As construction advances, the company aims to achieve long-term sustainability and profitability through production efficiencies and high-margin operations.

The strategic partnership with Clean Elements not only secures financial support but also strengthens confidence in Galan's long-term vision and operational capabilities. As the global demand for lithium continues to surge, driven by the transition towards renewable energy and electric vehicles, projects like HMW are poised to benefit significantly.

In conclusion, the successful completion of the $20 million placement marks a pivotal moment for Galan Lithium Limited, laying a robust foundation for future growth. The company's focus on advancing the HMW project signals its readiness to take a substantial leap within the lithium sector, setting a trajectory aimed at establishing itself as a leader in sustainable lithium production on a global scale.