Galaxy Resources Limited (ASX:GXY) Performance Options Aligning With Lithium Carbonate Strategy In China
Perth, Aug 14, 2009 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY) today announced plans to introduce a new performance-based options plan to align the incentives of the directors and management with the objectives of the Company's new strategy to develop the Jiangsu Lithium Carbonate processing facility in China.
The Company has achieved significant progress in advancing the development of the Lithium Carbonate project. Since the start of the 2009 calendar year, the fully diluted market capitalisation of Galaxy has grown significantly to approximately $146 million. The Company wishes to further incentivise directors and management to continue the growth performance in line with the overseas Lithium Carbonate strategy.
Given the current uncertainty surrounding the taxation implications of share options, the Directors intend to seek shareholder approval for two tranches of incentive based options to all of the current Directors. In respect of these replacement options, the resolutions will not be put forward to shareholders, nor the options issued, until such time as the performance hurdles are met.
The exercise price had been agreed with directors at the time when the share price was around $0.60 but the announcement was delayed due to the Federal Government changes in share scheme taxation implications. The options would be issued to directors in two tranches.
The options would be issued to directors in two tranches (in accordance with the attached table - please see the link below.)
http://www.abnnewswire.net/media/en/docs/61257-ASX-GXY-456542.pdf
It is the intention of the Board to issue options to key executives, under similar terms (except for exercise price), subsequent to the performance hurdles being met. The exercise price of the executive options will be set at 80% of the average closing sale price of the GXY Shares on the ASX over the 5 trading days immediately preceding the date of the announcement of the issue of the Options by the Board.
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.
| ||
|
