Galan won't proceed with proposal

Galan Lithium has announced it will not proceed any further regarding an unsolicited non-binding indicative proposal from Puerto Rico-based EnergyX.

On August 6, Galan, a lithium aspirant with a market cap of $59.24 million, told the market it had received a proposal from EnergyX in relation to potentially acquiring lithium assets at its Hombre Muerto West and Candelas projects in Argentina for $US50 million cash, along with common EnergyX shares, which the prospective purchaser also valued at $US50 million.

It also outlined EnergyX's proposal did not extend into a takeover bid for Galan.

“The board remains confident and enthused by the interest shown for the development of its 100 per cent owned HMW and Candelas projects and looks forward to providing further updates on its world class lithium brine projects,” Galan said.

Juan Pablo Vargas de la Vega-led Galan also provided an update regarding developments at Hombre Muerto West.

The West Perth-based junior said it had generated a list of partners and financers, which could allow for a definitive sales agreement and financing options short-term – while permitting for Hombre Muerto West phase two production was progressing on the back of local government support.

Galan last traded at 12 cents per share.