Galaxy Resources Limited (ASX:GXY) Shareholders Overwhelmingly Approve Hong Kong Listing
Perth, Dec 22, 2010 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) ("Galaxy") are pleased to advise that a General Meeting of Shareholders today overwhelmingly approved all resolutions for the Company's plans to list on the Hong Kong Stock Exchange ("HKEx") in the first quarter of 2011.
In addition, shareholders approved the issue of up to 21,582,733 fully paid, ordinary shares in the Company to strategic investor Fengli Group (Hong Kong) Co., Ltd, at a price of A$1.39 per share.
The US$260M capital raising and Hong Kong listing will provide the platform for Galaxy to become a vertically integrated company, from raw product lithium production through to chemical processing and battery manufacturing.
The rationale for the listing in Hong Kong is tied to the strong appetite for lithium investment from Chinese and international investors, along with China being Galaxy's central market for lithium carbonate.
Managing Director, Mr Iggy Tan, said it was pleasing to see such strong support for the Company's growth strategy.
"Galaxy's compelling 'China story', encompassing the downstream lithium carbonate plant in Jiangsu coupled with the Mt Cattlin resource, is well understood by investors in Hong Kong," Mr Tan said.
"The Hong Kong Stock Exchange listing marks another exciting growth phase for the Company with our enormous potential to deliver significant value for existing and new Galaxy shareholders."
Funds from both the capital raising and the Fengli share issue will be used to repay Galaxy's US$105M loan facility; to develop its lithium-ion battery project, to ramp-up Mt Cattlin project working capital; and potential lithium-related acquisitions.
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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