Buenos Aires / Sydney — Galan Lithium (ASX: GLN) has confirmed it will move forward with a proposed A$20 million ($13m) private placement to fund construction at its flagship Hombre Muerto West (HMW) lithium project in Argentina, while also disclosing it has rejected a $150 million takeover bid for its portfolio in the country.
The financing, backed by The Clean Elements Fund, follows completion of due diligence and will see the fund acquire nearly 182 million shares at A$0.11 each — a 21% premium at the time of the deal. The purchase will be executed in two A$10 million tranches, with the second closing no later than November 22.
At Monday’s close, Galan shares traded at A$0.14, valuing the company at around A$135 million ($87.5m).
Phase 1 Construction on Track
Proceeds will be used to advance Phase 1 construction of the HMW project in Catamarca province. The project targets 4,000 tonnes per year of lithium carbonate equivalent (LCE), producing a 6% lithium chloride concentrate, with first output expected in H1 2026.
Over four phases, HMW is projected to ramp up to 6,000 tonnes per year, with an estimated mine life of 40 years.
“With the support of Clean Elements, Galan now has the funding certainty to complete Phase 1 construction at HMW and is firmly on track to deliver first production in 2026,” said Managing Director Juan Pablo Vargas de la Vega.
Global Competitiveness Boost
The Clean Elements Fund, already a shareholder, described HMW as an “exceptional lithium project” combining scale, grade, and execution capability “that places it among the best globally.”
Further strengthening its investment case, HMW was recently admitted into Argentina’s RIGI (Régimen de Incentivo para Grandes Inversiones) program. The $217 million project now benefits from a reduced corporate income tax rate of 25% and 30 years of fiscal stability, making it one of just six projects to secure approval.
Takeover Approach Rebuffed
In parallel with the financing announcement, Galan revealed it had rejected a $150 million bid for its Argentine assets. Management said the offer undervalued the strategic potential of its lithium projects at a time of accelerating demand for critical battery materials.
“This is a major milestone that will further strengthen HMW’s global competitive position as a future low-cost producer,” Vargas de la Vega said.