Yesterday, Galan Lithium Ltd [ASX:GLN] shared news of very promising results from their third drill hole at the Candelas Lithium Brine Project, located in Argentina on the Hombre Muerto salar. After the news, shares skyrocketed by 30%.
Today, the company entered a trading halt, leaving securities fixed until commencement of normal trading Tuesday 9 April, ahead of an impending market announcement.
At time of writing, Galan Lithium’s share price is sitting at $0.32, but shares of Galan have been steadily rising over the last six months.
What caused Galan Lithium’s trading halt?
Today’s trading halt was granted by the ASX, on pending release of information about a capital raising.
Field measurements from the third drill hole (C-03-19) showed results of brine conductivities, which surpassed the field instrument limits of 200mS/cm. The brine intercepted at depths of around 280 metres.
It is also positioned very close (2.5kms) to Galan’s maiden drill hole, which delivered significant results of low lithium impurities, at incept of 192 metres.
The third drill hole has similar geological sequences as the maiden hole. If the discovery continues to perform well, Galan Lithium’s share price could rise further.
Galan’s Managing Director Juan Pablo Vargas de la Vega said:
‘The discovery of further brines within the Candelas channel reinforces our view that the project has the very real potential to host a significant lithium resource in one of the world’s premium salars at Hombre Muerto. I look forward to updating shareholders as we continue drilling the third hole’.
What’s to come for Galan Lithium’s share price?
Shareholders have seen the value of Galan Lithium’s share price rise gradually over the last six months.
Yesterday, shares spiked over 30% before settling.
This could be a trend that is encouraged, as Galan continues its exploration of brine.
There’ll be more to come for investors, as we wait for further media releases about the drilling program.
For Money Morning
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