Galaxy Resources Limited (ASX:GXY) Postpones Hong Kong IPO On Unfavourable Financial Markets
Perth, Mar 14, 2011 AEST (ABN Newswire) - Lithium focused miner Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) announces a postponement of its proposed initial public offering (IPO) in Hong Kong until further notice, due to unfavourable financial market conditions.
ASX-listed Galaxy had planned a dual listing on the Stock Exchange of Hong Kong (SEHK) at the end of the current quarter.
Managing Director, Iggy Tan said that whilst the Company is very disappointed to have to delay its Hong Kong IPO, it is a prudent decision in light of serious international events and related market volatility.
"Given the Company's strong financial position, we saw no necessity to launch the IPO in a market environment that would not serve the interests of either existing shareholders or deal participants."
"We are still strongly focused on listing in Hong Kong and will proceed when we believe the time is right."
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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