Top Price Market
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

Top Price Market

Investing

Up to ~A$25 Million Capital Raise to Support Full Funding of HMW Phase 1

by September 10, 2024
September 10, 2024
Up to ~A$25 Million Capital Raise to Support Full Funding of HMW Phase 1

Galan Lithium Limited (ASX: GLN) (Galan or the Company) is pleased to announce the launch of a capital raising of up to A$25 million. The Company has received firm commitments for a Placement of approximately A$12 million (before costs) to institutional, sophisticated, professional investors and Chemphys at A$0.105 per share.

Highlights:

Galan has received firm commitments to raise A$12 million via a placement at A$0.105 per share (Placement)Galan launches up to A$13.3 million 1 for 4 non-renounceable entitlement offer (Entitlement Offer) at the same price as the PlacementOfftake partner Chemphys to subscribe for US$3 million (A$4.5 million) under the Placement, subject to completion of definitive agreementsProceeds of the capital raising together with the planned Chemphys Offtake Prepayment are expected to fund Galan into productionFunds will be used for further development of HMW, corporate overheads and working capital

In addition, the Company is pleased to announce a 1 for 4 non-renounceable entitlement offer to raise up to A$13.3 million at the same price as the Placement (the Placement and the Entitlement Offer together being the Offer).

Galan’s proposed offtake partner1, Chengdu Chemphys Chemical Industry Co., Ltd (Chemphys) or designated affiliate, has agreed to subscribe for approximately A$4.5 million under the Placement. The investment by Chemphys is subject to completion of definitive offtake agreements.

Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:

“We are delighted with the support for the Placement and welcome a number of new investors to the register. In addition, on behalf of the Board of Directors, I would like to thank our shareholders for their ongoing support.

We also welcome the participation of Chemphys in the Placement which further strengthens the relationship between our companies.

The Board has adopted a lower capital intensity Phase 1 development to an initial 4,000 tpa LCE rate in light of market conditions. Funds raised from the Offer and the planned Chemphys prepayment provide the means to complete this development and keep our planned start to production in the second half of 2025.

Amid challenging market conditions Galan is moving forward with the development of HMW. We remain confident about the project economics underpinning the HMW development and the future of the lithium market.”

Placement

The Company has received firm commitments for a Placement of approximately A$12 million at A$0.105 per share.

Under the Placement, excluding Chemphys participation, the Company will issue 69,533,340 fully paid ordinary shares in the Company at A$0.105 per share (New Shares) (41,832,692 being issued under the Company’s ASX Listing Rule 7.1 capacity and 27,700,648 under its ASX Listing Rule 7.1A capacity).

New Shares under the Placement, excluding Chemphys participation, are expected to settle on 16 September 2024 and to be issued on or around 17 September 2024. Chemphys Placement participation is expected to settle within 10 business days after shareholder approval, as applicable, and completion of definitive offtake agreements. The Chemphys investment is subject to a sunset date of 31 December 2024, unless otherwise mutually agreed.

The issue price of A$0.105 per New Share represents a 8.7% discount to the last closing price of A$0.115 on 5 September 2024 and a 16.1% discount to the 5-day VWAP of A$0.125 as at the same date.

The Placement is not underwritten.

Entitlement Offer

The Company is pleased to announce a 1 for 4 non-renounceable entitlement offer at A$0.105 per New Share to raise up to approximately A$13.3 million. The record date for the Entitlement Offer is 13 September 2024.

Indicative Timetable

Petra Capital Pty Limited acted as Sole Bookrunner and Joint Lead Manager and Barclay Wells Limited acted as Joint Lead Manager to the Offer. Alpine Capital acted as Co-Manager to the Offer. Terry Gardiner is a Director of Galan and is also an Executive Director of Barclay Wells Limited.

Click here for the full ASX Release

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
McCaul says he will hold Blinken in contempt after State Department shrugs off his demands for testimony
next post
Trump-backed plan to avoid government shutdown advances to House-wide vote as Republicans defect

You may also like

Juggernaut Announces Strategic Investment by Crescat Capital Funds...

Cobalt Market 2024 Year-End Review

Canada Silver Cobalt Begins Drilling at Lowney-Lac Edouard...

​Tech 5: Bitcoin to Complete Halving, NVIDIA Dives...

PDAC 2024: Here’s What You Need to Know

Invitation to Participate in Share Purchase Plan

Cardiol Therapeutics Announces Exercise and Closing of Over-Allotment...

StrategX Discovers Extensive High-Grade Graphite at Nagvaak and...

Top 3 Canadian Pharma Stocks of 2024

When is the Starlink IPO Date and Can...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • OpenAI’s Sam Altman thanks Sen John Fetterman for ‘normalizing hoodies’

    • Former Supreme Court Justice David Souter dead at 85

    • Ukraine says it has uncovered Hungarian spy network working in border region

    • Trump claims ‘I don’t know her’ and ‘listened to’ RFK Jr about surgeon general pick getting MAGA pushback

    • Rubio just got an additional job in Trump’s administration — and he’s not the only one wearing multiple hats

    Categories

    • Business (1,632)
    • Investing (4,781)
    • Politics (7,550)
    • Uncategorized (2)
    • World (6,136)
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions
    • Email Whitelisting

    Disclaimer: toppricemarket.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 toppricemarket.com | All Rights Reserved


    Back To Top