Here’s why the Galan Lithium (ASX:GLN) share price leapt 7% today

a man in a hard hat and overalls raises his arms and holds them out wide as he smiles widely in an optimistic and welcoming gesture.

The Galan Lithium Limited (ASX: GLN) share price finished up more than 7% today amid an announcement on its wholly-owned lithium project in Argentina.

At market close, Galan shares finished at $1.82, an increase of 7.37% on the day.

Let’s take a closer look.

What did Galan announce today?

Galan advised a feasibility study tender on the company’s Hombre Muerto West (HMW) Project has been completed. It also announced the ongoing study has been awarded to global consultancy group Hatch.

The HMW Project is one of Galan’s three lithium brine exploration projects in South America. The next stage of the project is expected to be delivered late in the fourth quarter of 2022.

Galan’s Managing Director Juan Pablo (JP) Vargas de la Vega is optimistic about the company’s future:

The lithium industry is growing faster than anyone could anticipate requiring lithium batteries at an unprecedented rate. We would like to think that together we can make a small, however, important difference globally in helping to transition to an environmentally better world.

It’s more good news for Galan after it released a preliminary economic assessment (PEA) for its Candelas project last month. It found the company could be sitting on a $1.2 billion lithium resource at the site.

How has Galan Lithium performed over the year?

The Galan share price has been on a tear this year, up 427% in the last 12 months and 31% in just the last week.

The company has a current market capitalisation of around $535 million.

The post Here’s why the Galan Lithium (ASX:GLN) share price leapt 7% today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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