$360M Galan Lithium buying MAN shares on market

This morning we saw $360M capped Galan Lithium increase its shareholding in our US-based lithium exploration Investment Mandrake Resources (ASX: MAN).

Galan recently backed MAN with a $1.5M investment at 5c per share.

Since then, Galan bought another $282k shares on market at ~5.6c per share equivalent.

Galan now holds 5.85% of MAN.

In our most recent MAN note, we suggested that Galan's interest in MAN's new US lithium brine project was an important validation of the project's potential. Seeing Galan go and increase its shareholding on market further strengthens this signal.

Another interesting takeaway for us is how MAN's strong cash position at ~$19M could be contributing to larger investors/corporates having to buy on market to gain more exposure to its US lithium project.

Typically corporates would look to enter through a partnership/joint venture or via an equity position when a company needs capital.

MAN is in the fortunate position of not needing to raise any capital.

We are hoping this strong cash position contributes to more on-market buying not just from Galan but other investors who want exposure to MAN's lithium brine project.

To see why we are Invested in MAN, what we want to see the company achieve this year and the key risks to our Investment Thesis check out our latest MAN note here: MAN Secures USA Lithium Brine Project