Galan Lithium Limited (ASX: GLN) has successfully raised $1.1 million through its At-the-Market Subscription Agreement (ATM) with Acuity Capital.

The funds will be allocated towards the development of the company’s Hombre Muerto West lithium brine project in Argentina and for working capital purposes.

The capital raise was executed through the issuance of 7,050,000 fully paid ordinary shares at $0.156 per share.

This price represents an 8.8 per cent discount to the 15-day Volume Weighted Average Price (VWAP) of $0.171 as of July 12, 2024.

In addition to the ATM raise, Galan issued an extra 7,950,000 fully paid ordinary shares to Acuity Capital as collateral against the ATM facility.

These shares were issued at no cost, bringing the total collateral shares to 15,000,000.

The ATM facility, which expires on January 31, 2029, provides Galan with a flexible funding mechanism.

To date, the company has utilised the ATM to raise a total of $3,350,000, with $11,650,000 remaining available under the facility.

Galan’s Managing Director, Juan Pablo Vargas de la Vega, commented on the funding: “This capital injection will allow us to maintain momentum on our Hombre Muerto West project, which is crucial to our growth strategy in the lithium sector.”

It’s worth noting that Galan is not obligated to use the ATM and can cancel it at any time, including the option to buy back and cancel the collateral shares at no cost, subject to shareholder approval.

This funding round demonstrates investor confidence in Galan’s lithium projects and provides the company with additional resources to advance its operations in Argentina’s lithium-rich Hombre Muerto salar.