From L to R: Mr D Sun (VP Creat), Mr I Tan (MD GXY), Dr Zheng (Chairman Creat), Mr C Readhead (Chairman GXY), Mr Ren (CEO Creat).
Perth, Sep 4, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY)(PINK:GALXF) is pleased to announce the formal signing of the Loan Facility Agreement with Chinese investment company Creat Group Co Ltd (Creat) was completed yesterday in Beijing.
The signing ceremony, signed by the Board of Directors of Creat and Galaxy, was witnessed by senior Chinese and Australian ministry officials, along with representatives of foreign and Chinese banks and financial institutions. The signing ceremony formalized the announcement last week by Galaxy of a financing package with Creat to fund development for Galaxy's Australian mining and Chinese processing projects.
The funding of A$159 million (A$29 million equity representing 19.9% of the company's shares on issue and A$130 million debt) will be used to fund the mine and primary spodumene processing phase at Ravensthorpe, Western Australia, and the construction of a lithium carbonate chemical facility at the Jiangsu Province Zhangjiagang Free Trade Zone near Shanghai.
The signing ceremony was opened by Dr Zheng, Chairman of Creat Group. Dr Zheng expressed his company's delight in the Galaxy investment and said that he looked forward to a long term and beneficial relationship with his new Australian partners.
Galaxy Chaiman, Mr Craig Readhead, said Galaxy was proud to have attracted the interest of Creat, a successful private Chinese investment enterprise.
"We understand that Creat is a very important private investment enterprise in China and that this is reflected in the high standing, success and reputation of the members of the Creat board and the skill and the ability of it's senior management team. We believe this will result in a balanced and harmonious relationship between Creat and Galaxy for many years to come".
"This will produce positive financial returns for our two companies and further enhance the important relationship between China and Western Australia", said Mr Readhead.
Assistant Governor of the China Development Bank, Mr JP Zhao and General Manager of Raiffeisen Zentrabank Osterreich (RZB), Mr A Werner also praised the Creat and Galaxy partnership during the ceremony.
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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