Galan Lithium secures $13m funding for its Argentine Hombre Muerto West project, ensuring construction, tax incentives, and first output by 2026.
Galan Lithium Limited announced on Monday that it will move forward with its planned A$20 million (US$13 million) private placement to fund its flagship Hombre Muerto West (HMW) lithium project in Argentina. The financing follows the completion of a thorough due diligence review by The Clean Elements Fund, reaffirming confidence in the project’s long-term potential.
The placement, first unveiled on June 20, involves Clean Elements purchasing nearly 182 million newly issued Galan shares at A$0.11 each. This price represented a 21% premium over market levels at the time of announcement. The investment will be executed in two equal tranches of A$10 million each. The first tranche is scheduled to close within five business days, while the second tranche is expected to conclude no later than November 22, 2025.
As of Monday’s close, Galan’s shares were trading at A$0.14 apiece, valuing the Australian lithium company at approximately A$135 million (US$87.5 million). The fresh capital injection will directly support the Phase 1 construction at the Hombre Muerto West project, located in Catamarca province. This phase targets establishing a 4,000-tonne-per-annum lithium carbonate equivalent (LCE) operation designed to produce a premium-grade 6% lithium chloride concentrate.
Galan has outlined an ambitious project timeline. The first output from HMW is scheduled for the first half of 2026, marking the start of a mine life projected to extend over 40 years and unfold across four production phases. Once the ramp-up is complete, production capacity is expected to increase to 6,000 tonnes of LCE annually.
In a company statement, managing director Juan Pablo Vargas de la Vega emphasized that Clean Elements’ backing provides the necessary funding certainty to advance Phase 1 construction. “With the support of Clean Elements, Galan is firmly positioned to deliver first lithium chloride concentrate production in H1 2026,” he said.
The Clean Elements Fund, already a shareholder in Galan, underscored its confidence in the HMW project during its due diligence. According to de la Vega, the review confirmed that Hombre Muerto West is “an exceptional lithium project, combining significant scale, strong grade, and execution capability, making it one of the best globally.”
Adding to its attractiveness, the HMW project was recently approved under Argentina’s newly introduced RIGI (Régimen de Incentivo para Grandes Inversiones) program. This scheme, designed to attract large-scale investment, offers reduced corporate income tax rates of 25% and guarantees fiscal stability for 30 years. The US$217 million development became the sixth project to be admitted into the program.
De la Vega hailed the approval as a key milestone that enhances HMW’s global competitiveness. “Being accepted into RIGI further strengthens HMW’s position as a future low-cost, long-life producer in the global lithium industry,” he said.
