Galan Lithium (ASX: GLN) has completed Phase 1 construction at its Hombre Muerto West lithium brine project in Argentina, marking a key transition point as it moves from developer toward producer.
Electrical and mechanical systems testing for the processing plant has also been completed, with wet commissioning due to start shortly using fresh water before moving to raw brine and pre-concentrated brine from the project’s evaporation ponds.
The project now holds a brine inventory of about 10,000 tonnes of lithium carbonate equivalent ready for processing by the end of April 2026, with first lithium chloride concentrate targeted in the first half of 2026 and first shipment planned for the second half.
Galan ended the March quarter with A$40.7 million in cash and no debt after completing a A$40m institutional placement to fund the Phase 1 capacity expansion, working capital and Greenbushes exploration.
Phase 1 Moves into Commissioning
All major Phase 1 infrastructure at Hombre Muerto West has now been installed, including the nanofiltration plant, evaporation ponds, and associated process facilities.
The nanofiltration plant was assembled on an accelerated timeline after fabrication and pre-installation testing in Sydney, with more than 25 personnel mobilised at site to complete structural, mechanical, and electrical installation work.
The plant has been designed with flexibility to support production beyond the expanded Phase 1 rate of 5.2 kilotonnes per annum of lithium carbonate equivalent.
Managing director Juan Pablo Vargas de la Vega described the quarter as “transformational” for Galan, with Phase 1 construction complete, expansion funding secured and a large brine inventory in place ahead of first lithium chloride concentrate production.
Expansion Funding Strengthens Near-Term Plan
Completed at A$0.41 per share, the A$40m placement received support from existing substantial shareholder Clean Elements Fund, along with global institutional and sophisticated investors.
Lake has earmarked proceeds from the transaction to expand Phase 1 production capacity at Hombre Muerto West from 4ktpa to 5.2ktpa of lithium carbonate equivalent, complete Phase 1 construction activities, fund exploration at Greenbushes South, and support general working capital.
Directors separately committed to subscribe for an additional A$1m, subject to shareholder approval at an extraordinary general meeting scheduled for 30 April 2026.
Pond construction works for the 5.2ktpa expansion are due to begin soon, with Galan targeting the production rate uplift in the first half of 2027.
Longer-Term Growth Remains Staged
Galan holds construction permits for Phase 2 at Hombre Muerto West, which would lift production to 21ktpa of lithium carbonate equivalent.
The company’s broader development plan envisages staged production growth across four phases to as much as 60ktpa, positioning Hombre Muerto West as a potential long-term lithium supplier.
The project forms part of Galan’s wider Hombre Muerto Salar portfolio, which also includes the Candelas project and a total resource inventory of 9.5 million tonnes of lithium carbonate equivalent.
Hombre Muerto West is profiled as a first-quartile cost project once in production and has received approval under Argentina’s Régimen de Incentivo a las Grandes Inversiones investment framework.
Greenbushes Adds Exploration Upside
At Greenbushes South in Western Australia, Galan advanced landholder access negotiations to support a planned ground-based geophysical program.
The work is intended to cover airborne anomalies identified during the company’s 2022 survey campaign, and targets defined through earlier geological mapping and soil sampling.
Galan also secured WA government co-funding for an airborne gravity survey that includes tenement E70/4889, which was granted in 2025.
The survey is planned for the third quarter of 2026 and will add to the company’s exploration position near the Greenbushes lithium mine.
Corporate Base Strengthened
Galan appointed Clean Elements Fund founder Ofer Amir as non-executive director during the quarter, adding European capital markets experience to the board.
Katherine Garvey also became company secretary, replacing Mike Robbins, who had served in the role since 2013.
During Argentina Week in New York, Mr Vargas de la Vega met Argentine President Javier Milei and received an award recognising Galan’s RIGI status from Economy Minister Luis Caputo and Catamarca Governor Raúl Jalil.
The March quarter leaves Galan funded for the immediate commissioning and expansion phase at Hombre Muerto West as it works toward first lithium chloride concentrate production and its first shipment later this year.
