Galan Lithium rejects $150M bid for Argentine projects

Australia’s Galan Lithium (ASX: GLN) has rejected a $150 million-offer from Zhejiang Huayou Cobalt and Renault Group to acquire its stake Hombre Muerto West (HMW) and Candelas projects in Argentina.The lithium explorer dismissed the bid as “opportunistic” and “undervalued,” emphasizing that it did not reflect the true potential of its assets.Shares in Galan surged on the news, closing nearly 40% higher in Sydney at 14 Australian cents each, bringing the company’s market capitalization to A$116.3 million ($74 million).Galan and its advisors determined that Hombre Muerto West offers a superior long-term outcome for shareholders. The flagship project is nearing production, with phase one targeting an annual output of 5,400 tonnes of lithium carbonate equivalent. Management is in the final stages of securing offtake and financing agreements for this phase, with completion expected by year-end.The company remains engaged in discussions with potential partners, including Chengdu Chemphys, which proposed a $40-million funding and offtake package in August last year.This marks the second time Galan has turned down a $150-million bid for these assets. Last year, lithium technology startup EnergyX also attempted to acquire Hombre Muerto West and Candelas.Galan’s projects hold a combined resource of 9.5 million tonnes of lithium carbonate equivalent at a high-grade concentration of 841 milligrams per litre (mg/L). The company continues to advance toward phase one production, now more than halfway complete.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com