Galan’s Expansion Hinges on Shareholder Vote Amid Market Optimism

Capital Raise to Accelerate Growth

Galan Lithium Limited (ASX – GLN) has successfully secured firm commitments for a A$40 million institutional placement priced at A$0.41 per share, representing a slight premium to the recent trading average. This capital injection is designed to underpin a significant 30% expansion of Phase 1 production at the company’s flagship Hombre Muerto West (HMW) lithium brine project in Argentina.

The placement attracted strong support from existing major shareholder Clean Elements Fund alongside a mix of global institutional and sophisticated investors, signalling robust confidence in Galan’s growth trajectory amid a favourable lithium price environment. Additionally, the company’s directors have pledged to subscribe for a further A$1 million, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM) scheduled for mid-March 2026.

Expanding Production Capacity and Exploration

The funds raised will primarily facilitate the expansion of Phase 1 production capacity from the initially planned 4,000 tonnes per annum (ktpa) lithium carbonate equivalent (LCE) to 5,200 ktpa LCE. This 30% uplift is expected to deliver operational synergies, including cost savings on equipment mobilisation and procurement efficiencies. Construction activities at HMW are progressing well, with first lithium chloride concentrate production targeted for the first half of 2026.

Beyond production expansion, the capital will also support ongoing exploration efforts at Galan’s Greenbushes South project in Western Australia, strategically located near the world-renowned Greenbushes Lithium Mine. Working capital needs will also be met through this equity raising, ensuring operational flexibility as the company moves towards commercial production.

Market Position and Strategic Outlook

Galan’s Hombre Muerto West project is distinguished by its sizeable mineral resource, ranking among the top ten lithium brine projects globally, and its notably low impurity profile. Positioned in the lithium triangle of South America, the project benefits from cost advantages that place it in the first quartile of the industry cost curve once operational. The company also enjoys fiscal benefits under Argentina’s RIGI framework, providing long-term tax stability and incentives.

Managing Director Juan Pablo Vargas de la Vega highlighted the timing of the expansion as opportunistic, capitalising on the recent surge in lithium prices. He emphasised that the equity raising’s pricing above recent volume-weighted average prices reflects investor recognition of Galan’s readiness to deliver first production and leverage the improving market conditions.

Looking ahead, Galan has permits in place to further expand production capacity up to 21 ktpa LCE in subsequent phases, with potential to scale to 60 ktpa LCE in later stages. The company’s strategic positioning and resource quality suggest it is well placed to play a significant role in the evolving lithium supply chain.