2021 has picked up right where 2020 left off for lithium miners.
The sector is undeniably in the midst of a purple patch. With some of the big names delivering even bigger returns.
But, not to be outdone, the small-cap lithium miners aren’t far behind either. With Galan Lithium Ltd [ASX:GLN] proving that point today. Seeing a 10.5% rise in its share price thanks to a fresh acquisition.
All-in on a promising project
Galan confirmed this morning that it has acquired an 80% stake in the Greenbushes South project. Securing the deal via an agreement with their new partner Lithium Australia NL [ASX:LIT].
Together, the duo has plans to scope out the site. With a preliminary feasibility study (PFS) already on the cards. Including a commitment from Galan to solely fund all expenditure until said study is complete.
So, it’s clear that they’re hoping for a good result, and the possibility to develop this site in future.
As Managing Director Juan Pablo Vargas de la Vega notes:
‘We are delighted to acquire a significant majority stake in a highly prospective lithium project in a world-renowned lithium district and increase our existing lithium exploration ground at Greenbushes in Western Australia.
‘We have secured an outstanding exploration opportunity in Western Australia to add to our existing portfolio of assets in Argentina that have a potential production profile. We will proceed to exploring this tenure in a methodological step-by-step manner and progress tenement applications to grant. We are pleased to joint venture with Lithium Australia NL and look forward to updating the market with our developments in due course.’
It will certainly make for an interesting prospect. Once again highlighting the bustling lithium sector at the moment.
What’s next for Galan?
Moving forward, the immediate focus for Galan is obviously to close this deal. Which they shouldn’t have too much trouble doing, we imagine.
From there, Galan and LIT will need to work together on finalising their plans for the PFS. Work that could decide whether or not the project progresses beyond just the exploration stage.
And with the market for lithium running hot, they will want to act quickly to try and capitalise. Potentially racing against the clock to get this mine up and running.
But it certainly presents a fascinating opportunity for investors.
However, if you’re looking for more immediate lithium investments, we’d suggest perhaps looking elsewhere. With plenty of options available to investors right now.
In fact, we’ve put together an entire report on some of our favourites. Including three lithium stock picks that may be primed for a big 2021.
Get your free copy of this report, including the three stocks, right here.
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