THE BOURSE WHISPERER: Galan Lithium (ASX: GLN) announced firm commitments to raise $50 million through a two-tranche placement to institutional, sophisticated and professional investors.
Galan Lithium said the Placement provides it with flexibility in respect to its ongoing capital expenditure requirements at Hombre Muerto West (HMW), Candelas and Greenbushes South.
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.
The Placement is in two tranches.
Tranche One will raise $29.8 million and was well supported by high-quality domestic and offshore institutions.
Tranche Two, which is subject to Galan shareholder approval, will raise $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 $65.1 million.
“We are delighted to announce the completion of the Placement which has enabled us to introduce a number of high-quality institutions to Galan’s register,” Galan Lithium managing director Juan Pablo (JP) Vargas de la Vega said in the company’s ASX announcement.
“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.
“I would like to thank all new and existing shareholders for their ongoing support and look forward to accelerating the development of Galan’s projects at a particularly exciting time for the industry”.”
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