Galan would also receive a 10% gross revenue royalty from production at the Hombre Muerto West project. Credit: Maksim Safaniuk/Shutterstock.

Energy Exploration Technologies (EnergyX) has made an unsolicited, confidential, conditional, non-binding indicative buyout proposal for the Argentinian lithium assets of Galan Lithium.

The offer includes $50m in cash, and shares in EnergyX, valued at another $50m.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Puerto Rico-based EnergyX’s shares are currently not listed on any stock exchange.

Galan Lithium’s Argentinian lithium assets are located in Salar del Hombre Muerto and Candelas.

In addition to the acquisition cost, EnergyX has committed to investing another $50m. This investment is earmarked for the initial commercial phase of lithium production at the Hombre Muerto West project and for maintaining the project assets.

See Also:

Galan would also receive a 10% gross revenue royalty from commercial production for a decade.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Negotiations between Galan and EnergyX are ongoing, with Galan seeking to secure a confidentiality agreement regarding the proposal. The agreement is pending with EnergyX.

The proposal is subject to various conditions including satisfactory due diligence and the negotiation of definitive, binding transaction documentation.

In a press statement, Galan said: “The proposal remains subject to consideration by Galan’s board, and given the early-stage nature of discussions and its conditionality, there is no certainty a transaction will eventuate.

“Given the proposal contemplates the disposition of Galan’s main undertaking, Galan shareholder approval would be a necessary condition to completion under a binding agreement, if such an agreement were to eventuate.”

EnergyX CEO Teague Egan was cited by Reuters as saying that the company intends to acquire Galan’s assets in Argentina to consolidate acreage amid low prices.

Egan said: “There is no doubt in my mind that lithium demand will continue to grow later this decade.”