Galan Lithium (ASX: GLN) has secured crucial funding and an offtake agreement with Australian firm Authium, marking a significant step forward for its Hombre Muerto West (HMW) lithium project in Argentina. The agreement grants Authium the right to purchase 45,000 tonnes of lithium chloride concentrate for its US-based production facility over a six- to 12-year period and provides Galan with approximately $9.4 million in offtake prepayments.
The partnership with Authium is expected to significantly lower upfront capital and operating costs for Galan. Specifically, Galan anticipates a reduction of $41.5 million in capital expenditure by eliminating the need for a liming plant. Operating costs are also projected to decrease by around 18% relative to the HMW Phase 1 definitive feasibility study. Managing Director Juan Pablo Vargas de la Vega emphasized the financial, technical, and timing benefits of the Authium partnership, stating it offers the best path to complete HMW Phase 1.
In addition to the Authium agreement, Galan has secured firm commitments for a placement of approximately $13 million to institutional, sophisticated, and professional investors and plans to raise up to $4 million through a share purchase plan. The company anticipates commencing initial production with greater efficiency, maintaining its target for first concentrate production within the first half of 2026.
