Galan slashes costs, secures funding for Argentina | Australian Markets

Galan Lithium has introduced a transformation partnership with United States lithium skilled Authium to secure a binding funding and offtake package deal that can propel the company’s flagship Hombre Muerto West (HMW) lithium brine project towards first manufacturing.

The deal contains a totally funded and operated plant to be equipped by Authium, eliminating a substantial US$41.5 million (A$65.5M) in capital expenditure for Galan.

Additionally, Authium is anticipated to slash working prices by 18 per cent on its earlier feasibility examine projections, cementing Galan’s place as a low-cost lithium producer for its part one manufacturing.

The agreements embrace a lithium chloride focus offtake deal and an working settlement for superior nano-filtration processing technology at HMW. Authium says it can buy 45,000 tonnes of lithium carbonate equal (LCE) over six to 12 years, offering an extra US$6M in prepayments to help Galan’s construction timeline. First manufacturing is slated for the primary half of subsequent yr.

The partnership comes after Galan rigorously reviewed its funding choices, together with a beforehand introduced memorandum of understanding with China’s Chengdu Chemphys.

Galan says its newly inked deal affords superior financial, technical and timing benefits over Chengdu’s offer, positioning HMW as a high-margin lithium producer in Argentina’s prolific Lithium Triangle.

To bolster the project’s financing, Galan has raised A$13M by a placement of about 120 million shares at $0.11, with commitments from institutional and complicated buyers, together with Authium’s founder Cameron Stanton, who will increase his stake within the company to 2 per cent.

The company can also be offering present shareholders an alternative to take part in a share raising of up to $4M by a buy plan set on the similar price.

We are extraordinarily happy to have secured this HMW manufacturing funding by way of the Authium agreements and the location. This funding package deal will see Galan transfer into initial manufacturing with larger effectivity whereas holding our timeframe for first focus manufacturing within the primary half of 2026.

Galan’s HMW and Candelas initiatives have a lately up to date world-class 9.5-million-tonne LCE useful resource grading at 841 milligrams per litre (mg/L) in Argentina’s prolific Lithium Triangle.

The new partnership with Australian-founded Authium is set to leverage the company’s nano-filtration processing technology, which was proved up beforehand at initiatives comparable to Rio Tinto’s Rincon mine, 100 kilometres north.

Galan says the method will decrease HMW’s prices and improve the standard of its 6 per cent lithium chloride focus, which is able to align the project with rising demand for high-grade, low-impurity feedstock for lithium iron phosphate batteries.

Galan’s HMW first part stays on observe for completion within the second half of 2025, focusing on 5400t every year of LCE. The company is managing an estimated 9000t LCE in brine inventories, which it says will quickly be processed at Authium’s plant.

The 18 per cent working value discount, mixed with the definitive feasibility examine prior estimate of US$3500/t LCE manufacturing prices, reinforces HMW’s place within the first quartile of the industry’s value curve – a vital benefit amid subdued lithium costs.

The offtake settlement contains market-linked pricing tied to battery-grade lithium carbonate (≥99.5 per cent purity), with a proper of first refusal for extension.

With construction advancing, financing secured and prices considerably lowered, Galan says it is able to transition from developer to producer. The Authium partnership de-risks HMW’s first part and positions Galan as a doubtlessly profitable lithium producer in a depressed lithium market, which historical past tells us might flip round drastically at any second.

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