Opportunistic offer at best, as you can see from GLN announcement.
EnergyX is not even listed. Trying to take advantage of price gut in lithium
Galan Lithium Limited (ASX:GLN) (Galan or the Company) refers to a recent media report that it hasreceived a takeover bid.Galan advises that it has not received a takeover bid but that it has received an unsolicited, confidential,conditional, non-binding indicative proposal from Energy Exploration Technologies, Inc. (EnergyX) inrelation to a potential acquisition of Galan’s Argentinian lithium assets (Proposal).The Proposal is to acquire assets and real property held by Galan related to its holdings in Salar delHombre Muerto and Candelas (Project Assets) for US$50 million in cash, and common shares in EnergyXwhich EnergyX values at US$50 million. EnergyX is a corporation incorporated under the laws of PuertoRico and its securities, including its common shares, are not quoted or traded on any stock exchange.Under the Proposal EnergyX would also provide:• US$50 million, which it is noted would not be payable to Galan but rather to EnergyX’s whollyowned subsidiary which would own the Project Assets, with those funds to be committed andwholly dedicated to completing the first commercial phase of lithium production at HombreMuerto West and maintaining the Project Assets; and• a 10% gross revenue royalty to Galan for 10 years starting from commercial production.Galan has been seeking to negotiate a confidentiality agreement with EnergyX in respect of the Proposal.The confidentiality agreement currently sits with EnergyX.The Proposal is conditional on, amongst other things, completion of satisfactory due diligence andnegotiation and execution of definitive, binding transaction documentation. The Proposal remains subjectto 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 ofGalan’s main undertaking, Galan shareholder approval would be a necessary condition to completionunder a binding agreement, if such an agreement were to eventuate.
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Opportunistic offer at best, as you can see from GLN...
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