Galan Lithium rejects $150M bid for Argentine projects

Australia’s Galan Lithium (ASX: GLN) has rejected a $150-million (C$215-million) offer from Zhejiang Huayou Cobalt and Renault Group to acquire its stake in the 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 A14¢ each, bringing the company’s market capitalization to A$116.3 million (C$103.9 million).

Galan and its advisors determined that Hombre Muerto West offers a superior long-term outcome for shareholders. The project, the company’s flagship, is nearing production, with stage 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 stage, with completion expected by year-end.

Partner talks

The company remains engaged in discussions with potential partners, including Chengdu Chemphys, which proposed a $40-million funding and offtake package last August.

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. The company continues to advance toward stage one production, now more than halfway complete.