Galan Lithium Secures $13M Funding and Authium Offtake Deal, Targets 2026 Production

Strategic Partnership with Authium

Galan Lithium Limited has taken a decisive step forward in advancing its Hombre Muerto West (HMW) lithium project in Argentina by securing a binding funding and offtake agreement with Authium Limited. This partnership is designed to streamline Galan's path to production by leveraging Authium's expertise and capital to fund, supply, and operate the processing technology onsite. The agreement includes the sale of 45,000 tonnes of lithium carbonate equivalent (LCE) as lithium chloride concentrate over 6 to 12 years, providing Galan with a stable revenue stream and reducing upfront capital requirements.

Authium’s involvement notably removes approximately A$41.5 million in capital expenditure related to the liming plant from Galan’s Phase 1 budget and is expected to lower operating costs by around 18% compared to the original definitive feasibility study. This arrangement positions Galan to accelerate construction and operational readiness with materially improved cost efficiency.

Capital Raising to Support Construction and Working Capital

Alongside the Authium agreements, Galan successfully completed a placement raising approximately A$13 million at $0.11 per share, representing an 8.3% discount to the last closing price. The placement attracted institutional, sophisticated, and professional investors, with participation from company directors and Authium’s founder, Cameron Stanton, who increased his stake to around 2% post-placement.

Galan also announced a Share Purchase Plan (SPP) targeting up to A$4 million from eligible Australian and New Zealand shareholders at the same price as the placement. This SPP offers retail investors a chance to participate in the company’s growth without brokerage fees, although it is not underwritten, introducing some funding execution risk.

Resource Growth and Project Development Progress

Galan’s total mineral resource inventory now stands at 9.5 million tonnes LCE, boosted by a 150% increase at the Candelas lithium brine project announced earlier this year. This substantial resource base underpins the company’s commercial strategy and provides optionality for future development phases.

Construction activities at HMW are progressing with a focus on completing Phase 1 by the second half of 2025. The company targets first lithium chloride production in the first half of 2026, marking a critical milestone in transitioning from development to revenue generation.

Exploration and Broader Portfolio

While HMW remains the flagship project, Galan continues to explore its Australian and Canadian tenements. Preliminary surface sampling at the Donnelly project in Western Australia has yielded encouraging tin and gold assay results, suggesting potential for pegmatite-hosted lithium mineralisation and valuable by-products. Further targeted sampling and mapping are planned to refine exploration targets.

Meanwhile, no significant work was reported on the 50% owned James Bay project in Canada during the quarter, indicating a strategic focus on advancing HMW and Australian exploration assets.

Financial Position and Outlook

At quarter-end, Galan held approximately A$1.4 million in cash and liquid assets. The recent capital raising and offtake prepayments from Authium are expected to provide sufficient funding to complete HMW Phase 1 construction and support working capital needs. The company has also indicated ongoing efforts to secure additional working capital facilities if required.

Managing Director Juan Pablo Vargas de la Vega described the period as transformative, highlighting the strong alignment with Authium and the company’s readiness to commercialise its substantial lithium resources despite a challenging macroeconomic environment.