Galan Lithium to Raise AU$25 Million via Placement, Entitlement Offer; Shares Hit New 52-Week Low

Galan Lithium (ASX:GLN) is raising up to AU$25 million through a placement and a one-for-four non-renounceable entitlement offer, according to a Tuesday filing with the Australian bourse.

The placement component aims to raise AU$12 million through the issue of about 69.5 million shares at AU$0.105 each, an 8.7% discount to the last closing price of the company's shares.

This excludes shares subscribed for by the company's proposed offtake partner Chengdu Chemphys Chemical Industry, which made a AU$4.5 million commitment under the placement.

Chemphys' investment is subject to shareholders' approval and a sunset date of Dec. 31.

Meanwhile, the entitlement offer aims to raise AU$13.3 million. It will open on Sept. 18 and conclude on Oct. 3.

Proceeds will be used to fund Galan into production and to further develop its flagship Hombre Muerto West lithium project, the filing said.

The lithium explorer's shares were more than 4% in recent Tuesday trade and earlier hit a new 52-week low.

Price (AUD): $0.11, Change: $-0.0050, Percent Change: -4.35%