Shares in ASX-listed Galan Lithium Ltd. jumped nearly 18% by Jan. 20 trading close after China's Ganfeng Lithium Co. Ltd. became a shareholder of the company.
Ganfeng joined Galan's register through its GFL International Co. Ltd. unit, a major shareholder of Havelock Mining Investment Ltd.
The announcement was made after Havelock founding partner and Galan shareholder Raymond Liu on Jan. 20 lodged a Form 604 notifying a change in his substantial holdings.
Havelock now owns an indirect 10.64% stake or 16,995,870 shares in Galan while Hongze Group Ltd. now owns an indirect 0.63% stake or 1 million shares in the company.
Galan is focused on exploring lithium brines within South America's lithium triangle on the Hombre Muerto salar in Argentina.
In December 2019, Ganfeng signed a five-year deal to supply lithium to Bayerische Motoren Werke AG.
In October 2019, Ganfeng flagged a yearly drop of 55% to 65% in its full-year 2019 earnings amid falling lithium prices.