Argentine explorer Galan Lithium (ASX:GLN) has received strong support from boutique Perth financial services outfit Barclay Wells, which has agreed to enter an option underwriting agreement with the company.
Under the Company’s available ASX Listing Rule 7.1 capacity, Barclay Wells will underwrite the exercise of 11,391,504 of the Company’s current outstanding quoted options exercisable at $0.14 each and expiring on 31 December 2018, which guarantees Galan will receive at least $1,594,811 from the upcoming options conversion. The full number of quoted options on issue is 15,596,644 which if fully exercised will raise a total of $2,183,530.
Funds raised form the option conversion will be used to advance the exploration activities at the Company’s Hombre Muerto Lithium Project located in Catamarca Province, Argentina.
Permitting for initial drilling at Candelas is well advanced with assessment by Secretaria de Estado de Minería – Gobierno de Catamarca (the authority that approves the drilling permits in Catamarca, Argentina) reaching its final stages.
The final stages of the permitting process involve conducting community information meetings to update nearby residents on the activities of Galan and the significance of its exploration activities.
The community information meetings are in the process of being organised and the Company intends to conduct these meetings over the next fortnight.
Upon completion of the permitting process, Galan intends to rapidly progress operations, with the Company reaffirming its intention to target commencement of exploration in Q4 this year.
Galan has identified preferred highly-experienced drilling, and other logistics, contractors for the project. Once permitting has been received, the contracts can be finalised with operations to immediately commence. It is expected that drilling will start approximately two weeks after this.
Commenting on recent progress, non‐executive chairman Nathan McMahon said:
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 its 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.”
The lithium explorer notes it has identified a preferred drilling contractor, with draft contracts and other logistics being prepared, in order to quickly get underway following the granting of permits.
Barclay Wells will receive a fee of 4% of the underwritten amount.