Galan Lithium Limited · ASX:GLN
Galan Lithium — Investor Presentation (September 2024)
36 slides from Galan Lithium's investor presentation, Sep 10, 2024
Slide 1: Capital Raising Presentation September 2024
For personal use only CAPITAL RAISING PRESENTATION SEPTEMBER 2024
Slide 2: Disclaimers & Forward Looking Statements
DISCLAIMERS & FORWARD LOOKING STATEMENTS This presentation has been prepared by Galan Lithium Limited. Competent Persons The information contained herein that relates to exploration results and geology is based on information compiled or reviewed by Dr Luke Milan, who has consulted to the Company. D
Slide 3: Galan (ASX:GLN) – Corporate Snapshot
GALAN (ASX:GLN) – CORPORATE SNAPHSOT An experienced and aligned Board Capital Structure before Capital Raising 12 Month Share Price and Volume4 Board Richard ▪ Experienced corporate lawyer For personal use only Share price1 A$0.115 0.90 30 Homsany ▪ Principal of Cardinals Lawyers Shares on issue 507
Slide 4: A Rare Opportunity
A RARE OPPORTUNITY Executing a phased development of the highest quality lithium brine resources Ownership ▪ 100% For personal use only Hombre Muerto West (HMW) ▪ World class lithium brine project, near production Scale & grade ▪ 8.6Mt @ 859mg/L Lithium Carbonate Equivalent (LCE) in Resources1 Costs
Slide 5: Capital Raising
CAPITAL RAISING Up to ~$25m capital raising to fund 4,000 tpa LCE Phase 1 operation at HMW ▪ Up to approximately A$25m capital raising consisting of: For personal use only ▪ ~A$12m placement to sophisticated and institutional investors (Placement); and ▪ Up to ~A$13m 1 for 4 Non-Renounceable Entitle
Slide 6: Sources and Uses of Funds
SOURCES AND USES OF FUNDS Financing Phase 1 production at 4,000 tonnes per annum2 Sources of Funds (A$m) For personal use only Chemphys Prepayment1 58.8 ▪ Phase 1 funding – Chemphys US$40m offtake prepayment1 and Capital Raising2 to fund 4,000 tpa LCE Capital Raising3 25.1 ▪ Chemphys placement parti
Slide 7: Timetable
Timetable 1 Capital Raising Announcement 10 September 2024 For personal use only Entitlement Offer record date 13 September 2024 Placement settlement date2 16 September 2024 Placement allotment date 17 September 2024 Entitlement Offer opens 18 September 2024 Entitlement Offer closes 3 October 2024 S
Slide 8: Top Lithium Projects by Mineral Resources
TOP LITHIUM PROJECTS BY MINERAL RESOURCES HMW is a globally significant lithium project with close proximity to production Top Global Lithium Production and Construction Projects by Mineral Resources (LCE content) For personal use only 60 Production Contained LCE in Mineral Resources (Mt) Second hig
Slide 9: Top Lithium Projects by Production
TOP LITHIUM PROJECTS BY PRODUCTION HMW is poised to be a leading global lithium producer Global Positioning of Lithium Hard Rock and Brine Assets (2023 Production Data) For personal use only Production 250,000 HMW, Construction 200,000 Production of LCE tonnes 150,000 100,000 50,000 0 Greenbushes Wo
Slide 10: The Advantage of High-Quality Lithium Brine
THE ADVANTAGE OF HIGH-QUALITY LITHIUM BRINE High lithium grades at HMW have enabled a development plan with lower capital intensity and a lower risk profile Comparison of Li grade in Downstream process to convert into a final For personal use only Mining process to deliver a concentrate concentrate
Slide 11: HMW - Low Cost and Low CO2 Emissions
HMW - LOW COST AND LOW CO 2 EMISSIONS Galan’s HMW project is set in the lowest quartile of the industry cost curve and the industry GHG emissions curve1,2 For personal use only Lithium Carbonate Equivalent Cost Curve (2025)1 Greenhouse Gas (GHG) Emissions Intensity – 20302 16,000 All-In Sustaining C
Slide 12: HMW – A Lithium Project with Scale and Grade
HMW – A LITHIUM PROJECT WITH SCALE AND GRADE A multi-decade project with compelling project economics Map of Galan’s Tenure in Catamarca, Argentina ▪ 100% in the HMW and Candelas project areas For personal use only Project Interest Project Location ▪ Catamarca, Argentina Combined Mineral ▪ 8.6 Mt LC
Slide 13: Low Risk, Phased Production Growth
LOW RISK, PHASED PRODUCTION GROWTH Employing a proven development path to produce a lithium chloride product in high demand Phased development to 60ktpa LCE For personal use only C o ntext ▪ There is over 20 years of lithium production history in the Hombre Muerto Salar Phase 4 ▪ HMW has a very favo
Slide 14: Argentina – A Leader in Lithium Mining
ARGENTINA – A LEADER IN LITHIUM MINING A rich endowment of lithium is paired with a fiscal framework designed to encourage foreign investment Map of Argentinian Lithium Projects (LHS) and the South American Lithium Triangle (RHS) For personal use only Le a d i ng m i n i n g j u r i s d i c ti on ▪
Slide 15: High Grade Lithium Exploration
HIGH GRADE LITHIUM EXPLORATION Galan also holds ~30 km2 exploration ground immediately south of the high-grade Greenbushes Lithium Mine Aerial view of Galan’s Greenbushes South Exploration Tenure For personal use only Project Interest ▪ 100% in the Greenbushes South, Donnelly River and Kirup tenemen
Slide 16: Timeline
TIMELINE Targeting HMW Phase 1 production in the second half of 2025 Secure Phase 2 Proposed First production and Finalise Phase 1 Commissioning construction exploration at sales of LiCl For personal use only offtake and financing of plant permits Greenbushes South concentrate H2 2024 H1 2025 H2 202
Slide 17: Conclusion
CONCLUSION ▪ Near term lithium concentrate production from HMW For personal use only Production Scale & Grade ▪ 8.6Mt @ 859mg/L Lithium Carbonate Equivalent (LCE) in Resources1 Cost & emissions ▪ Bottom quartile on the lithium cost curve & for CO2 emissions Operational ▪ Lithium inventory building i
Slide 18: Appendix A: Mineral Resource & Ore Reserve Estimate
For personal use only A Appendix Mineral Resource & Ore Reserve Estimate
Slide 19: Mineral Resource Estimate
MINERAL RESOURCE ESTIMATE Mineral Resource Statement for Candelas1 Mineral Resource Statement for Hombre Muerto West2 In situ Li Avg. Li LCE Avg. K In situ K KCl Equiv. In situ Li Avg. Li LCE Avg. K In situ K KCl Equiv. For personal use only Category (kt) (mg/l) (kt) (mg/l) (kt) (kt) Category (kt) (
Slide 20: Ore Reserve Statement
ORE RESERVE STATEMENT Ore Reserve Statement for Hombre Muerto West (effective date September 2023) For personal use only Production Period Pumped Brine Vol. Ore Reserve Category Well Field Li Metal (kt) Avg. Li grade (mg/L) LCE (kt) (Years) (Mm3) West 1-7 34.9 30.8 884.0 101.2 Proven Santa Barbara -
Slide 21: Appendix B: Key Risks
For personal use only B Key Risks Appendix
Slide 22: Key Risks
KEY RISKS Risks specific to Galan Additional The Company’s capital requirements depend on numerous factors. The Company may require additional financing for exploration and development of its existing projects or for additional other For personal use only Requirements capital expenditure in the futu
Slide 23: Key Risks
KEY RISKS Risks specific to Galan Exploration Whether or not income will result from the development of the Company’s tenements depends on the successful establishment of mining operations. Factors including costs, actual For personal use only and mineralisation, consistency and reliability of ore g
Slide 24: Key Risks
KEY RISKS Risks specific to Galan Sovereign and Argentina For personal use only Political Risk The Company acquired 100% of Blue Sky Lithium Pty Ltd (Blue Sky) on 25 June 2018. The acquisition of Blue Sky means the Company (through Blue Sky) holds options to acquire the rights to projects located in
Slide 25: Key Risks
KEY RISKS Risks specific to Galan Sovereign and ▪ Different attitudes of the judiciary and court. For personal use only Political Risk, ▪ Difficultly in enforcing judgments. continued The commitment by local business people, government officials and agencies and the judicial system to abide by legal
Slide 26: Key Risks
KEY RISKS Risks specific to Galan Operating Risks The current and future operations of the Company, including exploration, project appraisal, development and possible production activities may be affected by various factors which can limit or For personal use only prevent such activities. Such facto
Slide 27: Key Risks
KEY RISKS Risks specific to Galan Insurance Risks Exploration for and development of minerals involves hazards and risks that could result in the Company incurring losses or liabilities that could arise from its operations. If the Company incurs For personal use only losses or liabilities which are
Slide 28: Key Risks
KEY RISKS Risks specific to Galan Access to The Company’s projects depend on an uninterrupted flow of materials, supplies, equipment, services and finished products. Due to the geographic location of Galan’s projects, it is dependent For personal use only Infrastructure on third parties for the prov
Slide 29: Key Risks
KEY RISKS Risks specific to Galan General General economic conditions, introduction of tax reform, new legislation, the general level of activity within the resources industry, movements in interest and inflation rates and currency For personal use only Economic exchange rates may have an adverse ef
Slide 30: Key Risks
KEY RISKS Risks specific to Galan Unforeseen Expenditure may need to be incurred that has not been considered in this Presentation. Although the Company is not aware of any such additional expenditure requirements, if such For personal use only Expenditure expenditure is subsequently incurred this m
Slide 31: Appendix C: Offer Jurisdictions
For personal use only C Appendix Offer Jurisdictions
Slide 32: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICSTIONS This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in a
Slide 33: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICSTIONS China Neither this document nor any other document relating to the New Shares may be distributed to the public in the People’s Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region
Slide 34: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICSTIONS Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in
Slide 35: International Offer Jurisdictions
INTERNATIONAL OFFER JURISDICSTIONS United Kingdom Any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) received in connection with the issue or sale of the New Shares has only been communicated or caused to be communicated and will only be comm
Slide 36: Contact
CONTACT ACN 149 349 646 ASX : GLN | FSX : 9CH Juan Pablo (“JP”) Vargas de la Vega For personal use only Managing Director Email: jp@galanlithium.com.au Tel: +61 8 9214 2150 Terry Gardiner Non-Executive Director Email: TGardiner@galanlithium.com.au Tel: + 61 400 900 377 Perth Office Level 1, 50 Kings
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