Sydney, June 19, 2012 (ABN Newswire) - On 30 March 2012 Galaxy Resources Limited (ASX:GXY) and Lithium One Inc (CVE:LI) announced their intention to merge via a plan of arrangement, to be implemented in accordance with Canadian Corporate and Securities law.
The Directors of Galaxy are pleased to advise that a General Meeting of Shareholders of Lithium One have overwhelmingly approved all resolutions required to be passed in order for the Merger to proceed. The full announcement made by Lithium One is attached.
This follows the announcement to the ASX yesterday that Galaxy shareholders have also overwhelmingly approved all resolutions for the Merger at the General Meeting held on 18 June 2012.
A final court hearing to approve the Merger is scheduled to be held before the Ontario Superior Court of Justice on 26 June 2012. Subject to the Ontario Superior Court of Justice granting the final order, the Merger is expected to be implemented on 3 July 2012.
Galaxy Resources Limited (ASX:GXY) is an Australian-based global lithium company with lithium production facilities, hard rock mines and brine assets in Australia, China, Canada and Argentina. The Company is an integrated lithium mining, chemicals and battery company listed on the Australian Securities Exchange (Code: GXY) and is a member of the S&P/ASX 300 Index.
Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western Australia where it mines lithium pegmatite ore and processes it on site to produce a spodumene concentrate and tantalum by-product. At full capacity, Galaxy will process 137,000 tpa of spodumene concentrate which will feed the Company's wholly-owned Jiangsu Lithium Carbonate Plant in China's Jiangsu province. The Jiangsu Plant has commenced production and will produce 17,000 tpa of battery grade lithium carbonate, the largest producer in the Asia Pacific region and the fourth largest in the world.
Galaxy is also advancing plans to develop the Sal de Vida (70%) 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 promise as a future low cost brine mine and lithium carbonate processing facility.
The Company completed a feasibility study for a proposed lithium-ion battery plant, to produce 620,000 battery packs per annum for the electric bike (ebike) market. The Company also owns the James Bay (100%) Lithium Pegmatite Project in Quebec, Canada.
Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential cathode material for long life lithium-ion batteries used to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the global lithium demand outlook and is positioning itself to achieve its goal of being involved in every step of the lithium supply chain.