ASX ANNOUNCEMENT6 December 2023HMW PHASE 1 CONSTRUCTION ON...

ASX ANNOUNCEMENT6 December 2023HMW PHASE 1 CONSTRUCTION ON SCHEDULE FOR INITIALPRODUCTION IN H1 2025Highlights:
• Pond 1 construction progressing to schedule; advance rate now at 65%completion
• Liners on-site; installation scheduled to commence late December 2023
• Fill of pond 1 expected in Q1, 2024; evaporation process to commence thissummer
• Preparation works for Ponds 2 and 3 underway, including topsoil removal• New camp and infrastructure progressing well with all final modulesmaterially in place
•Glencore technical due diligence has commenced

Galan Lithium Limited (ASX:GLN) (Galan or the Company) is pleased to provide an update on the progress ofconstruction activities at the 100% owned Hombre Muerto West (HMW) Phase 1 lithium brine project, with the aimof delivering lithium chloride production in 2025.


Cash at bank end June 23 was $45m. Cash at end sept23 was $33m.
It would imo be reasonable to assume, with construction underway for stages 1-3 concurrently, albeit on a limited basis for states 2-3, that cash burn has increased a bit over previous qtrs. Probable cash by end Dec will be under $20m.
Glencore won’t stump up the $70-$100m until they are happy with the unknown DD ( fair enough too - it’s their money).
I would reckon the stage 2 offtake and financing won’t be announced or decided until after Glencore decide on the stage 1 prepayment finance. It just seems logical to give the incumbent client the option to do future stages in addition to stage 1. Cleaner and simpler to deal with one client and have good ethical dealings both way.
Assuming this outcome, Glencore would have to decide by mid January and hand over the $$$ or Galan will need to find operational money from other sources asap. All parties would be aware of this.
Galan should satisfy Glencores DD, on the basis that they have consistently run a quality operation, largely on time, maintaining good relationships with govt, industry peers, and project progression, imo, but they will need all the time available to make that decision.
My estimate for stage 1 finance announcement is mid January, possibly closely followed by stage 2 O/T and finance news.