Australian lithium explorer Galan Lithium has declined a $150 million offer from Zhejiang Huayou Cobalt and Renault Group to acquire its Hombre Muerto West (HMW) and Candelas lithium brine projects in Argentina. The company dismissed the proposal as “opportunistic” and “undervalued,” emphasizing that it did not reflect the true potential of its assets.
The rejection marks the second time Galan has turned down a bid of this size for its Argentine projects, following a similar offer from EnergyX last year. HMW, Galan’s flagship project, is nearing production with phase one targeting an annual output of 5,400 tonnes of lithium carbonate equivalent. The company is in the final stages of securing financing and offtake agreements, which are expected to be completed by year-end.
Shares in Galan surged by nearly 40% following the announcement, closing at A$0.145 per share and bringing the company’s market capitalization to A$116.3 million ($74 million). This sharp increase reflects investor confidence in Galan’s decision to retain control over its high-grade lithium assets.
HMW and Candelas 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). Galan plans to expand output across four production phases, reaching 60,000 tonnes per year by 2030. The company remains engaged in discussions with potential partners, including Chengdu Chemphys, which proposed a $40 million funding and offtake package in 2024.
