Resources Top 5: Investors party as Galan Lithium rejects offer for Argentine assets

The rejection by Galan Lithium of a US$150 million bid for its Argentine assets has pleased investors with shares up as much as 52.4%.

Investors have welcomed the rejection by Galan Lithium of an offer for its Argentine assets Pic: Getty Images

• Galan Lithium has rejected a US$150m offer for its Argentine lithium assets 

• Enova Mining aims to take advantage of titanium’s critical mineral status with its Brazilian project

• Astral Resources has boosted its gold coffers in WA to 1.62 million ounces 

Your standout small cap resources stocks for Thursday, April 3, 2025.

Galan Lithium (ASX:GLN)

The rejection by Galan Lithium of a US$150 million buyout for its Argentine battery metals assets has brought smiles from investors with shares up as much as 52.4% to 16c, its highest level since November 2024.

Shares closed at 14.5c for a ~38% gain.

Volume was also well in excess of recent levels with more than 48 million changing hands valued at around $6m.

The offer from Zhejiang Huayou Cobalt Co and Renault Group to acquire the two lithium brine projects in the Hombre Muerto Basin in Argentina was rejected as being "opportunistic" and "undervalued".

Last August, EnergyX, a lithium technology startup company, also made an unsuccessful $150 million offer to purchase Galan's Argentine assets.

Galan’s board anticipates more favourable outcomes through ongoing offtake and financing arrangements for the Hombre Muerto West project.

Hombre Muerto West, Galan's flagship project in the Catamarca Province within the world-renowned Lithium Triangle, is near lithium projects owned by Rio Tinto and Posco Holdings, which is an investor in EnergyX.

HMW covers about 11,600 hectares and is 90km north of the town of Antofagasta de la Sierra, to the west and south of the Salar del Hombre Muerto. 

Candelas covers more than 24,000 hectares and is hosted within an approximately 15km by 3-4km wide structurally controlled basin.

Phase 1 operational works at HMW are continuing, with Galan being one of a few lithium companies in a position to move towards production in a difficult market due to the low-cost, high-grade nature of the project.

The Phase 2 HMW Mining Permit has also been granted, securing the pathway for continued development at HMW at an efficient commercial scale up to 21,000tpa LCE.

Independent benchmarking has highlighted HMW as being within the first quartile of the lithium industry AISC cost curve, and Galan is placed within the global top 10 of lithium construction and production projects by LCE mineral resource, which stands at 9.5Mt LCE with grades of 841 mg/L.

In late March the company issued 5.7m fully paid ordinary shares to Acuity Capital under an At-The-Market Subscription Deed which raised $575,000 at 10.1c per share and this follows US$3 million received in January 2025 from a placement by Chemphys.

Galan remains focused on ongoing operational works at, and funding solutions for, the 100%-owned HMW lithium brine project.

“The 2025 year has started very positively for Galan as we continue to move towards initial Phase 1 production at HMW,” Galan’s managing director Juan Pablo (JP) Vargas de la Vega said earlier in the year.

“With significant operational progress having already been made at the project, our focus is on securing the required offtake and funding to put HMW into production. 

“At Candelas we have been able to announce an increased mineral resource estimate, which now places our HMW assets, by resource, in the top 10 lithium construction and production projects globally.

“To achieve all this at a time when the lithium industry world-wide is facing considerable headwinds and where other projects are stalled or being wound back is testament to the quality of HMW and its high-grade, low-cost resource.”

Galan also owns 100% of the tenement package that makes up the Greenbushes South Project in WA, which covers approximately 315km2. The project is more than 250 km south of Perth.

Enova Mining (ASX:ENV)

Titanium, a highly versatile metal known for its exceptional strength-to-weight ratio, corrosion resistance and high-temperature stability, is one of the metals listed as being critical by many governments.

It is widely used in aerospace and defence for aircraft components and military equipment, as well as in the automotive sector for lightweight and durable parts. 

Titanium's biocompatibility makes it ideal for medical implants and devices, while its corrosion resistance supports applications in chemical processing, marine environments and desalination plants. 

Additionally, titanium dioxide (TiO2) is a critical pigment in paints, coatings, plastics and cosmetics, enhancing whiteness, brightness, and UV resistance.

With its diverse industrial applications, titanium continues to be a strategic and high-demand material globally. 

The Titanium dioxide market size was valued at US$20.24 billion in 2023 and is expected to reach US$34.78 billion by 2032 and grow at a CAGR of 6.2% over the period from 2024-2032.

Brazil’s Minas Gerais state is a hotpot for critical minerals including titanium, and ASX-listed Enova Mining is having success with exploration at the CODA project, including the Central and North tenements.

The latest report of high-grade results from RC and diamond drilling has seen shares increase to a daily high of 0.85c on volume of more than 103 million. 

First-time drilling at CODA Central has returned multiple titanium intersections exceeding 15% TiO2 along with rare earth elements which demonstrate consistent, large-scale mineralisation and strengthen the project's strategic value.

Results from RC holes at CODA Central include:

• 38m at 11.13% TiO2 from 7m, including 17m at 13.5% from 8m and 4m at 17.5% from 14m
• 26m at 12.6% TiO2 from 24m, including 19m at 14.02% from 27m and 7m at 15.9% from 32m
• 29m at 9.43% TiO2 from 20m, including 10m at 12.92% from 21m and 3m at 15.2 % from 25m; and
• 32m at 10.93 % TiO2 from 18m, including 19m at 12.77% from 18m.

All drill holes at CODA Central ended in mineralisation, indicating significant potential for deeper extensions. 

CODA North continues to deliver impressive high-grade mineralisation, with assay results from diamond drilling confirming significant enrichment of titanium and REE.

Broad areas of near surface free-dig mineralisation are ideal conditions for low-cost large-scale surface mining. 

Results include:

• 49m at 10.11% TiO2 from 7.10m, including 18.9m at 12.55% from 7.10m; and 
• 52.3m at 10.00% TiO2 from surface, including 31.6m at 12.82% from 17.45m and 6.1m at 16.9% from 22m.

“The latest drill results from CODA Central build on our titanium mineralisation discoveries at CODA,” Enova CEO Eric Vesel said.

All six drill holes intersected significant titanium and REE mineralisation and ended in mineralisation, the scale and continuity of this system continues to expand. 

“These results, alongside our ongoing exploration success at CODA North, highlight Enova’s growing portfolio of critical mineral assets," he noted.

“As we advance exploration across our key projects, we are well-positioned to define substantial titanium and rare earth resources, a key foundation for project development."

Astral Resources (ASX:AAR)

Astral Resources has boosted its gold coffers in WA to 1.62 million ounces due to a resource update at the Mandilla project about 70km south of Kalgoorlie.

Mandilla now hosts about 42Mt at 1.1g/t gold for 1.43Moz, with the Feysville project hosting another 196,000oz.

Importantly for a future production scenario, Mandilla resources in the higher confidence indicated category have increased by 49% to 31Mt at 1.3g/t for 1.3Moz.

The resource update of 160,000 ounces for Mandilla was achieved at the modest cost of $26 per ounce with infill drilling at Theia deposit forming the backbone of the update.

This new resource de-risks the project and underpins a feasibility study which is due to be finalised in the June quarter.

The study is expected to highlight the project’s robust economics, particularly with the current gold bull run sending prices surging through the US$3000 per ounce ceiling.

Delivery of the PFS, and the estimation of first ore reserves for Mandilla, will be major milestones for the company’s move from explorer to developer.

“Significantly the Theia deposit now hosts 1.15Moz in a single large open pit, making it the only undeveloped open cut deposit of +1Moz south of Kalgoorlie in the prolific Eastern Goldfields district,” said Astral Resources managing director Marc Ducler.

“Notably 72% of the Theia ounces are in the higher confidence indicated category.

“Work is continuing to progress the Mandilla PFS, with both opex and capex cost models for the process and non-process infrastructure received and under review. “Delivery of the PFS and declaration of first ore reserves in the June quarter of 2025 will represent a major milestone for Astral.”

Shares have been up to 18c, a 9.1% increase on the previous close, before settling at 17c, a 3% gain.

West Wits Mining (ASX:WWI)

Over in another leading gold producing nation, South Africa, West Wits Mining is looking to unlock further value for shareholders by undertaking a strategic review of its assets given the higher gold price environment. 

The gold price rose to US$3164 per ounce overnight following President Trump’s tariff announcement, which outlined a 10% baseline tariff on imports from all countries, with higher rates for nations with trade surpluses including China (34%), the EU (20%) and Japan (24%). 

West Wits (ASX:WWI) is optimising key project assumptions of the Qala Shallows mine plan as well as related projects across the entire Witwatersrand Basin (WWB) project as a result.

The company believes that a strategic reassessment is warranted given the sustained increase in the gold price, which now exceeds US$3000 per ounce, and materially exceeds the gold price assumptions used when the original plans were finalised. 

The Qala Shallows life of mine plan and budget were last updated in July 2023 as part of the definitive feasibility study. 

At this stage, the review will focus on evaluating lower cut-off grades and previously excluded mining blocks, which may be potentially more viable under the current gold price environment.

WWI believes unlocking these zones could increase the ore reserve base and support an accelerated production ramp up to enhance project economics. 

Dreadnought Resources (ASX:DRE)

Another company looking to bank on gold’s safe-haven benefits is Dreadnought Resources at its Mangaroon project in the Gascoyne region of WA.

RC drilling is underway at the project with a focus on adding near term production ounces from the granted mining leases.

There will be 46 holes drilled for about 3000m at the Star of Mangaroon, Popeye, Lead Mine, Pritchard’s and Two Peaks prospects. 

Drilling has started at Star of Mangaroon with 14 holes targeting near-surface high-grade ounces that were intersected in historical drilling and were not included in the November 2024 resource nor the January 2025 scoping study.

Eleven RC holes will then be drilled following up on a previous intercept of 3m at 22.8g/t gold from 13m that was drilled at the end of 2024. 

Drilling will then move through Pritchard’s, Two Peaks and Lead Gold Mine with holes designed to test for bedrock mineralisation beneath historical hard rock and alluvial workings.

Drilling is expected to take three weeks with assays expected in May/June 2025. 

“Dreadnought is looking forward to kicking off what will be one of many drill programs this year as we continue to focus on our gold strategy at Mangaroon and Illaara,” managing director Dean Tuck said.

“This program will see us first adding ounces to the Star of Mangaroon. The addition of shallow, high-grade ounces within the scoping study pit will have positive impacts on the already robust scoping study.

“Drilling will then focus on identifying a second or third shallow high-grade open pit opportunity on the granted mining leases. 

“Proving up additional open cuts on the granted mining leases will allow us to produce more gold, improve mining efficiency and increase cashflow.”

Dreadnought’s objective remains to begin open pit mining at Star of Mangaroon in 2025 and process material at Black Cat’s Paulsens processing facility.

This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While Astral Resources and West Wits Mining are Stockhead advertisers, they did not sponsor this article.

Originally published as Resources Top 5: Investors party as Galan Lithium rejects offer for Argentine assets