It's a mixed bag for listed lithium companies today. However, one ASX lithium stock isn't making any moves after a request for a voluntary suspension of its shares.
Investors will be wondering why shares in Galan Lithium Ltd (ASX: GLN) are locked down again today. After all, the $153 million Argentinian lithium project developer was expected to resume trading this morning after entering a trading halt on Monday.
Shares are still frozen at 38 cents a pop. So, what's the go with the prolonged halt?
Permitting puts this ASX lithium stock on ice
On Monday, the company requested a trading halt until 17 April. The reason given to the market was a 'pending update on government permitting'.
As per ASX rules, a company must request a voluntary suspension when:
- It anticipates not being able to make an announcement to satisfy [continuous disclosure] obligations for a longer period than the maximum permitted duration of a trading halt (generally two trading days).
This explains why Galan Lithium made a request for a voluntary suspension today. However, the underlying reasoning given remains 'pending an update on government permitting'.
The ASX lithium stock is in the process of developing its lithium project Hombre Muerto West (HMW). The company noted full construction permits had been granted under phase 1 in its March Singapore investor presentation.
As such, some are speculating on whether the update could pertain to phase 2 permits.
At this stage, the specifics of the update are unknown. Shareholders are in the dark over whether the update will be positive or negative. All that's left to do is wait until the announcement is made.
The voluntary suspension will stay in place until Friday 19 April or until the announcement is released.
What else is happening?
Investors are digesting a sudden funding announcement made on Friday afternoon.
Released after market close, the ASX lithium stock revealed an at-the-market subscription deed with Acuity Capital. The deed gives Galan access to a maximum of $15 million of capital at its discretion.
No details were disclosed on why the company took action on the funding facility. Although Galan Lithium's cash on hand as of 31 December had declined to $15.87 million.
The ASX lithium stock is down 65% over the last 12 months.
