Galan’s Hombre Muerto West Project Advances with 21,000 tpa Permit and 9.5 Mt LCE Resource

Operational Progress and Strategic Milestones

Galan Lithium Limited has reported substantial progress in its Hombre Muerto West (HMW) lithium brine project in Argentina, underscoring its potential as a low-cost, high-grade lithium producer. The company’s December 2024 quarterly report highlights the granting of the Phase 2 mining permit, a critical regulatory milestone that secures the pathway for commercial-scale production of up to 21,000 tonnes per annum (tpa) lithium carbonate equivalent (LCE).

Phase 1 operational works continue steadily, with lithium chloride inventories in evaporation ponds reaching approximately 7,900 tonnes LCE, consistent with the Phase 1 Definitive Feasibility Study (DFS) parameters. Galan has moderated its initial production target to 4,000 tpa LCE, aiming for first production in the first half of 2026, a timeline adjusted to reflect ongoing financing and offtake negotiations.

Resource Expansion and Global Positioning

In a significant boost to its resource base, Galan announced a mineral resource upgrade at its Candelas project, increasing the estimate to 1.634 million tonnes LCE from 0.685 million tonnes. This uplift brings Galan’s total mineral resources to 9.5 million tonnes LCE, placing it within the global top 10 lithium projects by resource size. This enhanced resource base not only strengthens the company’s long-term development prospects but also supports plans for co-development of HMW and Candelas resources in future phases.

Financial Position and Funding Outlook

Galan’s financial footing remains cautious but constructive. The company ended the quarter with A$3.6 million in cash and liquid assets, supplemented by a US$3 million equity placement from Chengdu Chemphys Chemical Industry Co., Ltd in January 2025. This injection provides a runway toward production, while Galan continues to advance discussions on additional financing and offtake agreements, aiming for financial close in the first quarter of 2025.

The company’s phased development strategy, combined with its positioning in the lowest quartile of the lithium industry’s all-in sustaining cost (AISC) curve, underscores its resilience amid challenging market conditions. Wood Mackenzie benchmarking places HMW among the most cost-efficient and environmentally sustainable lithium projects globally, benefiting from conventional evaporation processing that reduces energy and water consumption.

Community and Regulatory Engagement

Galan’s strong relationship with the Catamarca provincial government and local communities is reflected in the recent mining permit grant and ongoing efforts to secure the Regimen de Inversiones en Gas y Energia (RIGI) status. This regime offers fiscal incentives including a reduced corporate tax rate, accelerated depreciation, and import duty concessions, which could materially enhance project economics. The company’s commitment to local employment and supply chain development remains a cornerstone of its sustainable development approach.

Looking Ahead

As Galan advances toward first production, the company’s ability to secure final project financing and offtake agreements will be pivotal. The lithium market’s volatility and the competitive landscape underscore the importance of Galan’s low-cost, high-grade resource and strategic positioning. With a clear development roadmap and strengthened resource base, Galan is poised to contribute meaningfully to the global lithium supply chain amid the accelerating energy transition.