Junior has been battling to find funding in tough market environment
Amid the ongoing lithium price malaise, battling brine developer Galan Lithium is reducing the initial size of its Hombre Muerto West project in Argentina by about 25% and is seeking to raise up to $25 million in new equity.The first stage of HMW is now targeted to yield 4000t per annum of lithium carbonate equivalent in the form of lithium chloride, with the previous target being 5400tpa.Galan says the new funding and recent offtake prepayment are expected to fund HMW into production.
The original 5400tpa version was previously costed at US$104 million and was said to be about 40% complete at the end of June.Galan hasn't clarified how much the 4000tpa operation will cost.The $12 million placement includes offtake partner Chemphys subscribing for $4.5 million, though that is subject to completion of definitive offtake agreements.Last month, Chemphys signed an MoU for offtake that involved a US$40 million pre-payment.
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