Galaxy Resources Limited Stock Market Press Releases and Company Profile
Lithium One (CVE:LI) Merger Advances to Next Stage
Lithium One (CVE:LI) Merger Advances to Next Stage

Perth, April 19, 2012 AEST (ABN Newswire) - Galaxy Resources Limited (googlechartASX:GXY) is pleased to announce that in respect of its proposed merger ("Proposed Merger") with Lithium One Inc (googlechartCVE:LI) and following the announcement of Galaxy's capital raising, Lithium One's Board of Directors has maintained its recommendation to the holders of Lithium One securities that they vote in favour of the Proposed Merger. Lithium One has received an updated opinion from BMO Capital Markets (financial advisors to Lithium One), that, as of the date of such opinion and subject to the assumptions, limitations and qualifications stated in such opinion, the consideration to be received by the Lithium One shareholders pursuant to the terms of Proposed Merger is fair, from a financial point of view, to such shareholders.

Galaxy announced on 12 April 2012 that it had successfully raised A$30 million (before costs) via a placement ("Placement") to institutional and sophisticated investors. The Placement will now settle on 23 April 2012.1 In addition, Galaxy is seeking to raise a maximum of A$3 million via a Share Purchase Plan, which is open to existing shareholders of the Company.

The Proposed Merger, which is unanimously recommended by both the Galaxy and Lithium One Boards, and enjoys the support of key shareholders of both companies, requires Lithium One shareholder approval2 at a shareholder meeting. The date of this meeting is expected to be in late May 2012. Lithium One shareholders / option holders holding approximately 13% of the fully diluted capital of Lithium One have executed binding commitments to support the Proposed Merger, in the absence of a superior proposal.

Galaxy shareholders will also be asked to vote on certain resolutions relating to the Proposed Merger at the Galaxy AGM and / or an EGM, which is presently intended to be held before the Lithium One shareholder meeting in early June 2012.

Galaxy shareholders holding approximately 16% of the undiluted issued capital of Galaxy have confirmed their intention to vote in favour of the Proposed Merger.

About Galaxy Resources Limited

Galaxy Resources ASX:GXYGalaxy 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. 


Galaxy Resources Limited
T: +61-8-9215-1700
F: +61-8-9215-1799

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