It is understandable that the Glencore financing deal is at the...

It is understandable that the Glencore financing deal is at the centre of the discussions.Without much imagination, we can assume that Glencore is playing for time and thereby trying to increase the time and financial pressure on Galan. That is the obvious.The bargaining chip is the additional 15 kpta from DFS 2, in which Glencore is very interested.

"Glencore recently signed an offtake agreement with GLN to purchase up to 100% of the proposed lithium chloride concentrate production of Phase 1 and secure first rights to negotiate in respect of marketing and/or financing with regards to future Phase 2 expansion operations."

Incidentally, Glencore has signed a 400 million deal with Eramet for the Centenario Ratones project not far away. As recently discussed by daando and myself, no plant is operating at nameplate level. This means that Glencore has an increased interest in ensuring that this project is commercially successful as quickly as possible. Solution? Best feed from HMW!
It doesn't take much imagination to realise that there is great interest worldwide in Argentina's best resource project.Worldwide? Yes, especially if we succeed in obtaining an export licence(in May?).

If Glencore's offer is unacceptable, there are alternatives.
Under certain circumstances, a delay may have to be accepted (no construction stop, but postponement of the start of phase 2) or a smaller interim financing solution may be found. The current increased international interest at state level (e.g. USA/EU/Germany/Israel/India) has been publicised in various media reports. There is interest from private equity anyway.

"we wanna walk before we run....Oooops"
In the course of the forthcoming Glencore deal with acceptance on the part of Glencore, the Board lost its way from its paradigm of "we wanna walk before we run", tried to run operationally, which it succeeded in doing impressively, but stumbled financially. This has been recognised, so get up again, knock off your trousers and continue on the old path at the old pace.I am sure that the Board will not wait idly until Glencore signs up. There are various financing options at state level, such as ECAs.

What are ECAs?

Export Credit Agencies and Investment Insurance Agencies, commonly known as ECAs, are public agencies that provide government-backed loans, guarantees, credits and insurance to private corporations from their home country.

ECAs make it easier for those corporations to do business abroad, particularly in the financially and politically risky developing world. Most industrialized nations have at least one ECA, which is usually an official or quasi-official branch of their government.

A simple example:

Some ECA institutions

• United Kingdom UK EXPORT FINANCE (supports Lake Res. - Kachi project)
• United States - EXIM
• Canada - EDC-
• Australia - Export Finance Australia
• Korea - KOREA EXIM BANK
• Germany - German Export Financing Bank KfW IPEX-Bank
• France - Bpifrance

There are so many opportunities for Galan
and, as everything is going well operationally, the focus must now be on alternative financing options. The more the better. I have already mentioned various options recently:

In addition to the Glencore deal, which is still very likely to take place,
the following financing or capital procurement options are conceivable(just my short brainstorming):
• IFC - a member of the World Bank Group (Invest for Allkem's Sal de Vida Project-Jul 23)
• European Investment Bank (EIB)
• Kreditanstalt für Wiederaufbau(KfW) - Germany
• IDB Invest, a member of the Inter-American Development Bank Group(Invest for Allkem's Sal de Vida Project-Dec 23)
• support from provincial government (e.g. defer participation in road construction)
• acceptance with advance payment
• corporate transaction
• sale of Candelas
• sale of Greenbushes South
• partial sale of HMW7 .
• Partial sale of Candelas
• partial sale of Greenbushes South
• joint venture of the HMW project
• joint venture of the Candelas project
• joint venture of GB-South
• CR
• loan
• sale of the shares in Mandrake

The Galan Board must now do its financial homework, if necessary with external support.

Source: https://www.pwc.com.au/energy-transition/papers/10-export-credit-agency-financing.pdf

100% Galan owned
The nice thing for negotiations or co-operations is that HMW/Candelas/Greenbushes are 100% owned by Galan, good ESG guidelines and the proven operational excellence create additional trust.

With great confidence for a continued successful project
Smith71



P.S.



and FYI
https://www.txfnews.com/articles/7625/argentinian-lithium-mine-progresses-financing