Galaxy Resources Limited: Update Jiangsu Divestment

PERTH, AUSTRALIA, 18 Feb. 2015 /CNW Telbec/ -

17 February 2015

The Manager
Australian Securities Exchange
Level 40, Central Park
152-158 St Georges Terrace
Perth  WA  6000
Attention: Dale Allen

Dear Dale,

Galaxy Jiangsu Divestment Update

Galaxy Resources Ltd. (Galaxy or the Company) (ASX:GXY) would like to update Shareholders on the status of the Company's voluntary suspension.

The Company announced on 2 February 2015 that it had revised the terms for the divestment of the Jiangsu Lithium Carbonate plant in China to Sichuan Tianqi Lithium Industries Inc (Tianqi), as originally announced on 30 April 2014 (Transaction).

As highlighted in the 2 February 2015 announcement some uncertainty remains around the required regulatory approvals and expected timeframes for these approvals in China in connection with the Transaction.  As a result, the suspension was requested on 2 February 2015. 

While the Company has continued to work closely with Tianqi on this matter, it is still unable at this stage to provide information around the definitive timing of completion to Shareholders.

As a result, the Company requests that its shares remain in suspension until the earlier of such time as a further announcement on this matter can be released and commencement of trading on Tuesday, 3 March 2015. In the event that the Company is still unable to provide information around the definitive timing of completion to Shareholders at that time, it will request a further extension to the voluntary suspension. 

The Company is not aware of any reason why the voluntary suspension should not be granted.

The Company notes that a Notice of General Meeting to Shareholders to approve the revised terms of the Transaction was sent to Shareholders on 13 February 2014.

Yours sincerely

(Signature)

Simon Robertson
Company Secretary

SOURCE Galaxy Resources Ltd.