A$40 Million Institutional Placement to Support 30% Expansion of Phase 1 Hombre Muerto West (HMW)
Rhea-AI Summary
Galan Lithium (ASX:GLNLF) received firm commitments for an institutional placement of A$40.0 million at A$0.41 per share and directors committed to a further A$1.0 million (subject to shareholder approval). Proceeds will fund a 30% expansion of Phase 1 HMW to 5.2 ktpa LCE, Greenbushes South exploration and working capital.
Phase 1 construction continues with first lithium chloride production targeted for H1 2026. Tranche 1 (~86.6M shares) settles in early February; Tranche 2 (13.4M shares) awaits EGM approval in mid-March 2026.
Positive
- A$40.0 million institutional placement at A$0.41 per share
- Phase 1 HMW capacity increased by 30% to 5.2 ktpa LCE
- Directors committed an additional A$1.0 million subject to shareholder approval
- First lithium chloride production targeted for H1 2026
Negative
- Tranche 2 (13.4M shares) requires shareholder approval, delaying full capital completion until mid-March 2026
- Placement is not underwritten, leaving subscription completion partly exposed to market risk
News Market Reaction – GLNLF
On the day this news was published, GLNLF declined 13.97%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Highlights:
Galan has received firm commitments to raise A
$40 million (before costs) via an institutional placement at A$0.41 per share, a2% premium to the 5-day VWAPDirectors of the Company have separately committed to subscribe for an additional A
$1 million subject to shareholder approvalPlacement was strongly supported by existing substantial shareholder Clean Elements as well as global institutional and sophisticated investors
Proceeds of the capital raising will be used to expand production at HMW from current planned 4 ktpa LCE to 5.2 ktpa LCE, fund exploration activities at Greenbushes South and for working capital
Phase 1 construction works at HMW continue to progress with first production targeted for H1 2026
PERTH, AU / ACCESS Newswire / January 28, 2026 / Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to announce it has received firm commitments from institutional and sophisticated investors, including major shareholder the Clean Elements Fund (Clean Elements) for a placement of A
Together with existing cash reserves, the proceeds from the equity raising will be used to complete Phase 1 construction activities, expand Phase 1 production capacity from 4 ktpa LCE to 5.2 ktpa LCE, undertake exploration activities at Greenbushes South and for working capital purposes.
First lithium chloride concentrate production to come out of a current inventory of circa 9,500 t LCE in evaporation ponds remains targeted for 1H 2026.
Galan's Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
"An accelerated recovery in lithium prices has provided Galan with an opportunity to expand HMW Phase 1 production capacity by
"The equity raising has been very well supported with pricing at a premium to 5, 10 and 15 day VWAPs, which reflects that investors have recognised that Galan is well placed to take advantage of a higher lithium pricing environment, with first lithium chloride production targeted for the first half of 2026.
"On behalf of the Board of Directors, I would like to thank our shareholders for their ongoing support, which includes Clean Elements, and to welcome new high-caliber institutional investors from around the world to our register."
Details of the Equity Raising
Galan has received firm commitments to raise a total of
The Equity Raising will be undertaken in two tranches:
Tranche 1: Comprising the issue of approximately 86.6 million new fully paid ordinary share ("New Shares") to institutional, professional and sophisticated investors under Galan's placement capacity under ASX Listing Rules 7.1 and 7.1A.
Tranche 2: Comprising the issue of 13.4 million New Shares to Clean Elements and Directors of Galan, subject to shareholder approval under ASX Listing Rule 10.11 which will be sought at an Extraordinary General Meeting (EGM) to be held in Mid-March 2026. The date and details of the EGM will be communicated to shareholders on the ASX platform in due course.
The Equity Raising issue price of A
13% discount to the last closing price of A$0.47 0;2% premium to the 5-day VWAP of A$0.40 3;4% premium to the 10-day VWAP of A$0.39 5; and6% premium to the 15-day VWAP of A$0.38 6;
The New Shares will rank equally with existing Galan shares. The Institutional Placement is not underwritten.
Canaccord Genuity acted as Lead Manager and Bookrunner to the Placement.
Indicative Timetable 1,2
Event | Time / Date (2026) |
Trading Halt | Tuesday, 27 January |
Announcement of results of Equity Raising and trading halt lifted | Thursday, 29 January |
DvP Settlement of New Shares issued under Tranche 1 of the Equity Raising | Tuesday, 3 February |
Allotment of New Shares issued under Tranche 1 of the Equity Raising | Wednesday, 4 February |
General Meeting to approve issue of New Shares under Tranche 2 of Equity Raising | Mid-March |
Settlement of New Shares issued under Tranche 2 of the Equity Raising | Mid-March |
Allotment of New Shares issued under Tranche 2 of the Equity Raising | Mid-March |
| |
The Galan Board has authorised this release.
For further information contact:
COMPANY | MEDIA |
Juan Pablo ("JP") Vargas de la Vega | Matt Worner |
Managing Director | Vector Advisors |
+ 61 8 9214 2150 | +61 429 522 924 |
SOURCE: Galan Lithium Limited
View the original press release on ACCESS Newswire
FAQ
What is the size and price of Galan Lithium's (GLNLF) January 2026 institutional placement?
How will the A$40m raise affect Phase 1 production at Hombre Muerto West (GLNLF)?
When will Galan (GLNLF) start first lithium chloride production after the placement?
What approvals are needed for Galan's (GLNLF) director placement and Tranche 2 shares?
Who supported the institutional placement for Galan Lithium (GLNLF) and who managed the deal?
