Galan Lithium Ltd (ASX:GLN) has secured commitments from sophisticated and professional investors to raise $4 million in a share placement priced at 27.5 cents.
The funds will enable Galan to continue and expand its maiden drilling campaign along the Candelas channel at the Hombre Muerto Lithium project in Argentina.
The placement will also fund the commencement of initial resource work.
Notably, strong support was received in the placement from Australian and North American investors.
READ: Galan Lithium up 30% on discovery of highly conductive brines in third hole at Candelas
Galan’s managing director Juan Pablo Vargas de la Vega said: “We are pleased to have received such strong support from a range of Australian and North American investors, who now join our existing shareholders in aligning themselves to the success we are looking to achieve through our ongoing exploration at the Hombre Muerto Lithium Project.”
“We have achieved positive results to date, which we plan to expand through well planned exploration activities.”
The Hombre Muerto Lithium project comprises a number of smaller projects
Last week Galan intersected highly conductive brines in its third drill hole at the Candelas Lithium Brine Project.
The upper levels of a brine bearing aquifer were encountered from about 280 metres.
This hole was about 2.5 kilometres from the maiden drill hole which provided results including 192 metres at 802 mg/I lithium with low impurities on March 11, 2019.