Galan Lithium welcomes Ganfeng as a shareholder as lithium brine results continue to impress
Galan Lithium welcomes Ganfeng as shareholder following “exception” exploration successes at Hombre Muerto lithium brine project.
Galan Lithium (ASX: GLN) has welcomed one of the world’s leading lithium manufacturers Ganfeng as a shareholder.
The lithium major joined Galan’s register via its wholly-owned subsidiary GLF International Co, which is a major shareholder of Jinyu (Raymond) Liu’s Havelock Mining Investment.
According to Galan, Ganfeng is the largest lithium compound producer in China and one of the biggest worldwide.
In addition to being the world’s largest generator of lithium metals by capacity, Ganfeng also has the most complete industry value chain among all lithium producers.
News of Ganfeng’s investment in Galan sent the explorer’s share price skyrocketing in early morning trade.
The share price reached a high of $0.26 – up more than 33% on Friday’s close of $0.195.
By mid-morning, it was 17.95% higher and was trading at $0.23.
Argentinian assets
Today’s news of Ganfeng’s investment follows Galan’s recent exploration successes at its Hombre Muerto project in Argentina.
Last week, Galan revealed what it called “remarkable” results from drilling at the Rana de Sal licence at the project.
A 72-hour air lift test sample from the licence had returned 330m at 1,010 milligrams per litre of lithium.
The result came hot on the heels of an “exceptional” result at the company’s nearby Pata Pila licence, with that sample assaying at 946mg/l within a large 670m interval.
Additionally, both samples also contained “very low” impurities.
Commenting on the assays, Galan managing director Juan Pablo Vargas de la Vega said the company was “delighted”.
“On the back of the recent Pata Pila testing, we are very excited as we are now thinking of a potential new project that could be as important as the Candelas project,” he added.
A maiden resource including Pata Pila and Rana de Sal, which form part of the Western Tenements project, is scheduled for release during the current quarter.
Candelas lithium brine project
Galan’s more advanced flagship project is Candelas, which is also located on the Hombre Muerto salar within South America’s Lithium Triangle.
The company revealed a maiden resource for the asset at the start of October of 684,850 tonnes of contained lithium carbonate equivalent grading 672mg/l lithium.
A pre-feasibility study is underway at Candelas.