Galaxy Resources Limited (ASX:GXY)
Perth, July 24, 2009 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) is pleased to provide to shareholders the June 2009 Quarterly Report which provides a summary of the progress made by your company. During the quarter, Galaxy commenced the Definitive Feasibility Study (DFS) of the Jiangsu Lithium Carbonate Project China and secured a site in the Zhangjiagang free trade zone. Key raw material supplies for the proposed lithium carbonate facility were also secured. Galaxy has also embarked on the sale of 30% interest in the project as a means of raising the required capital.
Corporate
Appointment of GM China - In the June quarter Galaxy appointed Mr Michael Tamlin as General Manager China overseeing the development of the Jiangsu Lithium Carbonate project for the Company.
Mr Tamlin was General Manager-Marketing at Sons of Gwalia Limited (currently Talison Minerals Pty Ltd) from 1995 to 2006 looking after lithium and tantalum sales as well as other products. Most recently, he was General Manager-Marketing at Windimurra Vanadium Limited.
Mr Tamlin will be based in Zhangjiagang, Jiangsu Province, China and will be responsible for development of the Jiangsu Lithium Carbonate project. He will also be responsible for establishing the long term strategic partnerships in China required as an emerging lithium producer. Mr Tamlin, a metallurgist by background, speaks fluent Mandarin and has spent many years doing business in China for Sons of Gwalia and Windimurra Vanadium. Mr Tamlin is highly experienced in international marketing and global sales of lithium and tantalite mineral products.
Fund Raising
The Company raised A$6.65 million via a capital book build to sophisticated investors of State One Stockbroking during the period.
The book build placement commenced 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. 9.4 million shares were issued during the period and the balance of the placement (9.6 million shares) will be issued once an EGM is held in August 2009 for shareholders to approve the placement.
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. Some of the funds will be used to conduct 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.
Sale of 30% of the Project
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. 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.
The divestment process is well underway and discussions with interested parties are continuing.
For the complete Galaxy Resources Quarterly Activities Report for June 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/61104-ASX-GXY-453868.pdf
About Galaxy Resources Limited
Galaxy 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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