Galaxy Resources Limited (ASX:GXY) Finalises A$120 Million Capital Raising
Perth, April 14, 2011 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce it has finalised a A$120 million capital raising via an equity placement.
The raising was completed with sophisticated and institutional investor clients of Azure Capital, Morgan Stanley and Helmsec Global Capital (Joint Lead Managers). The placement was priced at A$1.10, which represented a 13.6% discount to the 30-day volume weighted average price (VWAP) prior to the pricing date of 8 April 2011.
The issue was substantially oversubscribed with strong interest coming out of Europe, Asia, US and Australia.
Galaxy Resources Managing Director, Iggy Tan, said the proceeds will strengthen the Company's capital base.
"We will use the funds for working capital and ramp up of our Mt Cattlin spodumene project in Western Australia and Jiangsu lithium carbonate plant in China, which we're due to commission at the end of the quarter. The timely commissioning and ramp up of Galaxy's operations are essential in meeting the imminent surge in demand for lithium carbonate from the EV/E-bike market. The raising will also provide the Company with funds for potential acquisitions and the repayment of some debt."
"We are pleased to welcome a number of particularly high-quality investors onto Galaxy's register, to help us execute our growth strategy and support the company as it moves forward."
The capital raising will be completed in two tranches and allocated as follows:
----------------------------------Tranche Shares Amount----------------------------------Tranche 1 31.0 m A$34.1 m----------------------------------Tranche 2 78.1 m A$85.9 m----------------------------------Total 109.1 m A$120.0 m----------------------------------
Tranche 2 is subject to the approval of Galaxy's shareholders in an Annual General Meeting scheduled for 13 May 2011.
Expected Timetable
The expected timetable for the capital raising is as follows:
- Notice of Meeting for AGM dispatched: 15 April 2011
- Issue of Tranche 1 shares: 21 April 2011
- Shareholder approval at AGM of Tranche 2: 13 May 2011
- Issue of Tranche 2 shares: 20 May 2011
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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