- Galan Lithium (GLN) is set to pocket up to $50 million from investors to fuel drilling and exploration activities in South America and Western Australian
- The placement will take place over two tranches, the second of which will require shareholder approval
- Funds are set to go towards its Hombre Muerto West and Candelas projects in Argentina, and its Greenbushes South stake in Western Australia
- The company says it is set to add two institutional investors with a “record of successful investment” to its register
- Galan Lithium shares are down 3.52 per cent to trade at $1.24 at 11:33 am AEST
Galan Lithium (GLN) is set to pocket up to $50 million from investors to fuel drilling and exploration activities at its South American and Western Australian lithium projects.
Fundraising will take place across two tranches after Galan said it received “significant demand” for its first proposed placement.
The company is set to issue up to 43.5 million new fully paid GLN shares at an issue price of $1.15 apiece, with the first round of approximately 25.9 million shares due to settle on August 19.
The remaining shares will require approval from shareholders, with a meeting scheduled for late September.
Galan noted it had received support from two institutional investors with a track record of “successful investment” in the natural resources sector. They are set to claim their shares via the second tranche.
Proceeds from the raise will provide general ongoing capital expenditure for its Hombre Muerto West and Candelas projects in Argentina and its Greenbushes South stake in Western Australia.
Galan Managing Director Juan Pablo Vargas de la Vega said the raise had allowed it to introduce a number of high-quality institutions to its register.
“This represents a significant milestone in the history of the Company and the recognition from these leading investors provides significant external validation for Galan’s extensive portfolio of strategic lithium projects,” he said.
Galan Lithium shares were down 3.52 per cent to trade at $1.24 at 11:33 am AEST.