• Galan secures binding funding package for initial production at Hombre Muerto West (HMW)
• Execution of an Offtake Agreement and an Operating Agreement with Authium Limited (Authium)
By Panorama Minero
Galan Lithium Limited announced it has secured a binding funding package that will support the completion of construction activities in H2 2025 at the world class Hombre Muerto West project (HMW), Catamarca province, in advance of lithium chloride concentrate production in H1 2026.
Agreements with Authium
Galan has signed definitive agreements with Authium, including a lithium chloride concentrate Offtake Agreement and an Operating Agreement which governs the roles and obligations for the processing technology to be implemented at HMW.
Following a comprehensive review of potential funding options, including the previously announced memorandum of understanding with Chengdu Chemphys Chemical Industry Co., Ltd, the Company decided that Authium was its preferred partner. The partnership with Authium offers the Company superior financial, technical and timing benefits to other identified alternatives and yields the best outcome for the Company and its shareholders to complete HMW Phase 1 and commence the receipt of revenues.
Under the terms of the Agreements, Galan will sell 45 kt (LCE) of its lithium chloride concentrate to supply Authium’s USA lithium processing operations over a period of 6 to 12 years. Galan will continue to manage the current HMW lithium brine inventories (estimated at 9,000t LCE), to final lithium chloride concentrate and will utilise Authium’s HMW based nano filtration processing plant to enable Galan to reach its target lithium chloride concentrate grade of 6%.
One of the key benefits of the Authium partnership is, that Authium will fund, supply and operate the processing plant at HMW. As a result, Authium’s proposal will enable Galan to significantly reduce its capital costs to complete HMW Phase 1, by removing $41.5 million of capital expenditure relating to the liming plant and is also expected to reduce operating costs by around 18% relative to the HMW Phase 1 DFS, due to cost savings related to the reagents and filtering plant.
In addition, Galan has the ability to drawdown on offtake prepayments of up to US$6 million over a 6-month period commencing from the date lithium is processed through the processing plant (Prepayment). Galan is now working with Authium to secure an additional working capital facility, should it be required.
Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are extremely pleased to have secured this HMW production funding via the Authium agreements and the placement. This funding package will see Galan move into initial production with greater efficiency while keeping our timeframe for first concentrate production within the first half of 2026.
We appreciate the path to this point has been challenging and we would like to take this opportunity to thank our loyal and patient existing shareholders for their support and to welcome our new shareholders. The support for the placement confirms investor confidence in our strategy and future prospects. In what has been a prolonged and testing commodity environment, Galan will now be able to transform into a lithium production company which speaks volumes for the quality of HMW.”
Authium Founder and Director, Cameron Stanton, commented:
"I am excited to return to Argentina and assist JP and his team in developing HMW. This project will be less challenging compared to other lithium brine projects I have been involved with in the region, as we believe GLN undoubtedly possesses the best lithium brine in Argentina, characterised by high grades and low impurity concentrations. We have an enhanced plan moving forward, utilising both conventional methods and new proven technologies to ensure the best possible CAPEX and C1 cost outcomes."
