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

Galan Lithium Secures A$20 Million Placement for Strategic Expansion

In a significant advancement for its operations, Galan Lithium Limited has announced a binding commitment for a A$20 million placement with The Clean Elements Fund. This capital infusion is set to enhance the company's flagship Hombre Muerto West (HMW) lithium project in Argentina, which is poised for lithium chloride concentrate production by mid-2026.

The placement is priced at A$0.11 per share, reflecting a notable 21% premium over the last closing price, indicating strong investor confidence. As part of the agreement, Clean Elements will also receive one unlisted option for every two shares issued during this placement, with an exercise price set at A$0.15 for options expiring three years from issuance.

This strategic funding, which is expected to complete following a due diligence phase of no longer than 77 days, will be subject to shareholder approval anticipated in early September 2025. The funds raised through this placement are crucial for concluding the construction of Phase 1 of the HMW project, which has a designed capacity of 4,000 tonnes per annum (4ktpa) of lithium carbonate equivalent (LCE).

Juan Pablo Vargas de la Vega, Managing Director of Galan Lithium, expressed optimism regarding the placement, noting, "We are extremely pleased to receive further support from Clean Elements. HMW is a world-class lithium project, offering exceptional scale and grade. This commitment reflects our value proposition to investors and comes at a crucial time for the lithium industry." He further highlighted the achievement of securing funding under challenging market conditions as an affirmation of HMW’s unique attributes. The coming year holds transformative potential for Galan as they push towards operational execution.

Clean Elements' Chairman, Ofer Amir, shared his enthusiasm about the partnership, stating, "We are incredibly excited to partner with Galan Lithium on what we believe is one of the most compelling lithium opportunities in Argentina today." He underscored their confidence in the HMW project, citing its exceptional scale and quality as key factors that position it as a major player in the competitive lithium market.

Details of the Placement

The placement comprises 181,818,182 shares and 90,909,091 options in total, split into two tranches:

• - Tranche One: A$10 million for 90,909,091 shares and 45,454,545 options, which are expected to settle shortly after due diligence completion.
• - Tranche Two: Another A$10 million for similar amounts, contingent upon shareholder approval and due diligence completion, anticipated for settlement around November 28, 2025.

The funds will be utilized to finalize Phase 1 construction activities scheduled for completion in the second half of 2025 to realize first lithium chloride production in early 2026. Additionally, a US$6 million prepayment facility will be accessible under the terms of the offtake agreement with Authium Limited, further bolstering the project's financial health.

In light of the current economic climate, Galan Lithium strategically pursued this placement to avoid unfavorable debt financing terms. By opting for equity, the company aims to strengthen its balance sheet while minimizing financing risks, notably maintaining a debt-free status as it progresses towards production.

About Hombre Muerto West

The HMW project is designed to operate as a lithium brine project with a multi-decade lifespan. The initial phase targets operations at 4ktpa LCE, producing a highly sought-after 6% lithium chloride product expected to advance into a long-term production growth plan. The project’s robust financial profile is anticipated to help mitigate funding and execution risks associated with lithium extraction.

HMW's lithium chloride will play a significant role in the supply chain for lithium iron phosphate (LFP) batteries, a product that is enjoying strong demand as it becomes a mainstay in global battery technology. This solidifies Galan’s strategic positioning within the lithium market and showcases the fundamental advantages of high-quality lithium brine resources.

With the backing of Clean Elements and a clear focus on operational milestones, Galan Lithium is poised for significant growth in the electric vehicle and renewable energy sectors, in alignment with the clean energy revolution that continues to unfold globally.