Galan Lithium Ltd (ASX:GLN) has entered into an underwriting agreement with Barclay Wells Ltd for the exercise of nearly 11.4 million outstanding quoted Galan options.
The options are exercisable at 14 cents each and will guarantee Galan raises almost $1.6 million before costs to advance exploration activities at its Hombre Muerto Lithium Project in Argentina.
The total number of quoted Galan options on issue is 15,596,644, which if fully exercised will raise nearly $2.2 million.
Barclay Wells will receive a fee of 4% of the full underwritten amount.
Galan non-executive chairman Nathan McMahon said the underwriting reflected the strong investor enthusiasm for Galan’s Candelas project and its 25,000-hectare landholding at Hombre Muerto.
He added: “Galan has made rapid progress, ensuring exploration activities can commence as quickly as possible at the Candelas target.
“The expediency with which the company has developed the permits and contractors reflects the deep in-country experience held by management and demonstrates our intention to rapidly develop this extremely encouraging lithium brine prospect.”
READ: Galan Lithium defines new areas of lithium brines at Hombre Muerto project
A submission for permits to allow an initial drilling program at the Candelas target has reached an advanced stage, with Galan now undertaking community information meetings to update residents on Galan’s exploration activities.
Once the permitting process is completed, Galan intends to rapidly progress exploration beginning in quarter four of this year.
Galan has identified drilling and logistics contractors for work at Candelas and contracts will be finalised once permitting has been received.
The company expects drilling to start about two weeks after finalising work contracts.