Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce that it has received firm commitments for an equity raising of A$14 million to institutional, sophisticated and professional investors (Placement) at A$0.23 per share.
Galan has received firm commitments to raise A$14 million at A$0.23 per share
Strong support received from offshore and domestic institutional and sophisticated investors, with the Placement oversubscribedFunds will be used for the further development of the Hombre Muerto West lithium brine project (HMW) in Argentina, corporate overheads and working capital
HMW phase 1 developments costs; andCorporate overheads, working capital and transaction costs
Canaccord Genuity (Australia) Limited and Petra Capital Pty Limited acted as Joint Lead Managers and Bookrunners to the Placement.
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented: “We are delighted with the support for the Placement and welcome a number of new investors to the register. In addition, on behalf of the Board of Directors, I would like to thank our shareholders for their ongoing support.
Funds raised from the Placement will allow the Company to further progress negotiations to complete the already advanced development of its 100% owned Hombre Muerto West lithium brine project in Argentina. We look forward to putting investors funds to work.”
Placement
The Company has received firm commitments for a Placement of A$14 million at A$0.23. Participants under the Placement will also receive one new unlisted option for every two shares subscribed (New Options). New Options will be issued subject to shareholder approval at a general meeting of the Company to be held in early to mid-July 2024. New Options will have an exercise price of A$0.35 and an expiry date two years from their issue.
Under the Placement, the Company will issue 56,521,740 fully paid ordinary shares in the Company at A$0.23 per share (New Shares) (39,718,322 under ASX Listing Rule 7.1A and 16,803,418 under ASX Listing Rule 7.1) plus, subject to receipt of shareholder approval, 28,260,870 New Options , raising a total of A$13 million (before costs), to institutional, sophisticated and professional investors. Additionally, Galan directors will be subscribing for up to 4,347,828 New Shares plus 2,173,914 New Options on the same terms raising a total of A$1 million (before costs) (“Director Placement”) in a second tranche that will be subject to shareholder approval at a forthcoming General Meeting (GM).
The issue price of A$0.23 per share, represents a 20.7% discount to the last closing price of A$0.29 on 15 May 2024 and a 23.8% discount to the 10-day VWAP of A$0.3018 as at the same date.
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