Galan Lithium (ASX:GLN)
received firm commitments to raise $50 million through a two-tranche placement to institutional, sophisticated and professional investors.
Placement funds will be used to accelerate Galan’s existing lithium projects, Hombre Muerto West, Candelas and Greenbushes South.
The mining company plans to accelerate drilling activities to establish well fields for production at HMW, convert existing resources to reserves at HMW and Candelas as well as conduct ongoing exploration activities for all projects.
Tranche one of the placement will issue approximately 25.9 million new fully paid ordinary shares at $1.15 per share, raising a total of $29.8 million.
Tranche two will seek a further 17.6 million new fully paid ordinary shares also at a price of $1.15 per share, to raise a further $20.2 million.
Shares in Galan Lithium (ASX:GLN)
are trading 6.6 per cent lower at $1.20.