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14.3¢ galan lithium limited

Ann: Galan Secures Glencore Agreement For Offtake & Financing, page-197

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Lorry2022

143 Posts.

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17/11/23

18:32

Post #: 70970320
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Originally posted by mondyinvest: ↑

I don't know there will be a CR attaching to this funding facility, I'm just mentioning it as a possible explanation for why it sold off. But I have seen a similar situation before - in 2021 JRV raised US$100M debt to finance their cobalt mine, and a condition precedent of the debt was that they raise US$50M of their own equity to strengthen the balance sheet. In that case it was via a bond issue, but here it makes sense too. Glencore would be putting their own money into the project, with the promise of future product being delivered, so they want to ensure the company remains well capitalised. In Galan's case, they had two quarters of cash left at 30/9, so it seems possible that a CP of any funding would be further funds raised to support their own working capital. Just a hypothesis, by no means guaranteed. It's also not a bad thing, just what developers at this stage of the cycle have to do.

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Thanks Mondy!

Apparently, English is not my first language and I often miss understand some details in the Ann. The reason of my thinking of CR thing is mainly from the selling off with comparably large volume, which reminds me of ＇too good to be true'. Licl is validated and only letft reason is about the acceptance of the offer and stage 2 funding.

GLN Price at posting: 70.5¢ Sentiment: Buy Disclosure: Held
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