Galaxy Resources Limited Stock Market Press Releases and Company Profile
Galaxy Resources Limited (ASX:GXY)
Galaxy Resources Limited (ASX:GXY)

Perth, May 14, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) is pleased to announce that it has raised A$6.65 million via a capital book build to sophisticated investors of State One Stockbroking.

The book build placement commenced last week when the share price was around 40-42 cents, and consists of the issue of 19 million shares at an issue price of 35 cents per share. 10 million shares will be issued and an Appendix 3B application for listing will be lodged once all subscription monies have cleared. The balance of the placement (9 million shares) will be issued once an EGM is held in the near future for shareholders to approve the placement.

Galaxy Managing Director Iggy Tan said the funds would be used to progress the next stages in the development of the mine and minerals plant at Ravensthorpe as well as the lithium conversion project in China". "We will soon commence detailed engineering for the Mt Cattlin project in preparation for long lead item procurement. We will also do further extension drilling of the Mt Cattlin resource to establish scope of extension beyond a 15 year mine life. The evidence suggests that there are significant further lithium deposits in the vicinity of the established reserves".

"Galaxy believes it now has sufficient cash on hand to fund the project and the company through to completion of lithium project funding".

In addition, during the recent RIU Round Up presentation in Sydney the company announced the project funding strategy.

Mr Tan said that Galaxy has opted to divest a minority direct interest in the project as a way of generating funds that will represent Galaxy's equity contribution to the project finance". It is proposed that Galaxy and the incoming joint venture partner will jointly develop and fund the project.

Mr Tan said that the proposed strategy will minimise further dilution of Galaxy shares, allowing full funding of the lithium project whilst allowing Galaxy to maintain control of the project and the company. "If this strategy is successful, it will be a very good outcome for our shareholders".

About Galaxy Resources Limited

Galaxy Resources ASX:GXYGalaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.

Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.

Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.

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Contact

Iggy Tan
Managing Director
Tel: +61-8-9215-1700
Mob: +61-419-046-397



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