Galaxy Resources Limited (ASX:GXY) Intends To Raise A$30 Million Via Convertible Note Facility
Perth, Oct 5, 2010 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce that it has agreed in principle to issue A$30 million in a convertible note to a strategic China based investor.
An indicative non-binding term sheet has been signed which is subject to final documentation, and the approval of Galaxy's Board, senior lenders and other stakeholders.
Galaxy Resources Managing Director, Iggy Tan said proceeds of the issue will be used for additional working capital and the ramp up of its Mt Cattlin and Jiangsu projects. Further details of the final terms, including the details of the investor, will be provided once final and binding transaction documents have been executed.
Hong Kong Listing
The Company is aware of several media reports regarding the potential for Galaxy listing on the Stock Exchange of Hong Kong (the SEHK). The Company confirms that it is evaluating the possibility of dual listing on the SEHK and, together with its advisors, is currently undertaking the preparatory work necessary to submit a listing application.
Mr Tan said that a listing in Hong Kong could provide an outstanding platform for growth and position Galaxy as one of the largest lithium carbonate producers in the Asia Pacific region.
"A Hong Kong listing could represent the beginning of another exciting growth phase for the Company with potential to deliver value for existing and new Galaxy shareholders," he said.
"However, at this stage, no decision has been made by the Board to proceed with a listing in Hong Kong and thus to submit the listing application."
"If submitted, Galaxy will inform the market at the appropriate time and the listing application will be subject to the approval of the SEHK".
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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