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

Perth, July 8, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) today announced it has signed a sale and joint venture (SJV) agreement with General Mining Corporation Limited (GMC) for the exploration and development of the Shoemaker hematite iron ore project.

Managing Director, Iggy Tan said given that Galaxy's prime focus is the development of the Mt Cattlin lithium project, the proposed sale and joint venture of Shoemaker is an excellent way of developing the project and maintaining an upside.

"This is a great deal for Galaxy and allows us to maintain an interest in the project without diverting attention away from the development of Mt Cattlin which is our core focus," said Mr Tan.

"We believe the Shoemaker project has a good potential for an economic iron ore deposit."

The Shoemaker project is located about 100 km north of Wiluna, Western Australia. In August 2008, Galaxy announced the results of a gravity survey and rock chip sampling of hematite iron mineralisation. Assay results of the rock chip sampling confirmed the presence of high grade hematite iron mineralisation at the project.

GMC will acquire a 50% interest in the Shoemaker project by payment of the following consideration on the date of completion:

1. A$100,000 cash payment;

2. A$1 million of Ordinary Shares in GMC to Galaxy; and

3. One (1) Option for every two (2) Ordinary Shares issued to Galaxy under (2) above, with an exercise date of 3 years from the date of issue.

The agreement is subject to the successful listing of GMC on the Australian Securities Exchange or completion of corresponding capital raising of at least A$3 million.

The SJV also allows GMC to earn a further 30% by expenditure of A$1 million on the Shoemaker project within 2 years of the date of completion. Galaxy is free carried from all expenditure for the project to the completion of a Bankable Feasibility Study and has a right to appoint a nominee Director to the Board of GMC.

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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