Shareholder Vote Looms as Galan Lithium Seeks Final Approval for $20M Funding
Galan Lithium has formalised a $20 million strategic investment agreement with The Clean Elements Fund to fund the initial phase of its Hombre Muerto West lithium project in Argentina, aiming for production in early 2026.
- Definitive $20 million subscription agreement executed with Clean Elements Fund
- Funding targets Phase 1 construction of Hombre Muerto West lithium brine project
- Shareholder approval scheduled for 22 August 2025 to finalise placement
- Clean Elements gains right to appoint a non-executive director upon full funding
- Phase 1 aims for 4,000 tonnes per annum lithium chloride concentrate production starting H1 2026
Strategic Funding Milestone
Galan Lithium Limited (ASX – GLN) has taken a significant step forward in advancing its Hombre Muerto West (HMW) lithium brine project by executing a definitive $20 million subscription agreement with The Clean Elements Fund, an existing shareholder. This agreement follows an earlier binding commitment announced in June 2025 and is contingent on Clean Elements completing due diligence and securing shareholder approval at Galan's upcoming general meeting on 22 August 2025.
The injection of capital is earmarked to fully fund Phase 1 of the HMW project, which targets an initial production capacity of 4,000 tonnes per annum of lithium chloride concentrate. Production is expected to commence in the first half of 2026, marking a critical transition from development to operational status for Galan.
Project Significance and Growth Potential
Hombre Muerto West is positioned as a world-class lithium brine asset with a multi-decade life, boasting a total resource inventory of 9.5 million tonnes of lithium carbonate equivalent (LCE). The phased development strategy, starting with Phase 1 and scaling up to 60,000 tonnes per annum by Phase 4, is designed to mitigate execution and funding risks while allowing for continuous process improvements.
Notably, the project’s lithium chloride product is a key input for lithium iron phosphate (LFP) batteries, which dominate the global battery market due to their safety and cost advantages. Galan’s ability to produce lithium chloride efficiently positions it well within the evolving battery supply chain, especially as demand for LFP batteries grows.
Governance and Strategic Partnership
As part of the subscription agreement, Clean Elements will have the right to appoint a non-executive director to Galan’s board once the full $20 million is received. This move signals a deepening partnership and aligns investor interests with the company’s strategic direction. Clean Elements brings a strong track record in lithium investments and is partnered with ISP Securities Ltd., a Swiss financial services group with global reach.
Galan’s management, led by Managing Director Juan Pablo Vargas de la Vega, is focused on delivering Phase 1 on schedule and leveraging the project’s low capital intensity and cost profile to establish a competitive foothold in the lithium market.
Looking Ahead
The upcoming shareholder meeting will be a pivotal moment for Galan, determining whether the placement proceeds to completion. If successful, the company will be well-positioned to commence construction and move towards production, contributing to the global lithium supply chain at a time when demand for battery-grade lithium continues to accelerate.
Bottom Line?
Galan’s $20 million funding deal sets the stage for a critical production milestone, but shareholder approval will be the next key hurdle.
Questions in the middle?
- Will shareholder approval be secured without delay at the August meeting?
- How quickly can Galan ramp up beyond Phase 1 to meet growing lithium demand?
- What impact will Clean Elements’ board appointment have on Galan’s strategic decisions?
