Galaxy Resources Limited - Completes A$91.5 Million Capital Raising
15.02.2011 | ABN Newswire
08:51 AEST Feb 16, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.Perth, Australia (ABN Newswire) - Galaxy Resources Limited (ASX: GXY) (PINK: GALXF) ('Galaxy') is pleased to announce it has completed its previously-reported A$91.5 million capital raising, following the receipt of the remaining A$49 million in the second tranche of funding (Tranche 2).
The balance of Tranche 2 comprised A$19 million in convertible bonds and a A$30 million equity placement with Fengli Group (Hong Kong) Co. Limited.
The initial part of Tranche 2 - A$10.5 million in convertible bonds - was received on January 14, 2011.
The capital raising proceeds will be used for the ramp-up program at Mt Cattlin, to finish construction of the Jiangsu Lithium Carbonate Project and to provide additional working capital
Galaxy Resources Managing Director, Iggy Tan, welcomed the new bond holders and shareholders to the company.
'We see this significant investment as a testament to the company's growth potential and its strategy of becoming a vertically integrated lithium company, involved in raw product lithium production, through to chemical processing and lithium-ion battery manufacturing,' he said.
About Galaxy Resources Limited:
Galaxy Resources Limited (ASX:GXY) (PINK:GALXF) is an emerging mining and chemical company focusing on lithium and tantalum production. Galaxy is at an advanced stage of developing its Mt Cattlin Lithium Project (hard rock spodumene) in Ravensthorpe, Western Australia. The Project encompasses a mine and minerals plant which will produce 137,000 tpa of 6% Li2O spodumene concentrate. Galaxy intends to add value to the Mt Cattlin Project by establishing its own downstream lithium processing facilities in China.
The Company is finalising plans to establish a lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate.
Contact:
Iggy Tan
Managing Director
Galaxy Resources Limited
Tel: +61-8-9215-1700
Email: ir@galaxylithium.com
http://www.galaxylithium.com