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Foreign Company Structure Established For Galaxy Resources Limited (ASX:GXY) In Hong Kong
Perth, July 29, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) today announced it has established a wholly owned investment subsidiary, Galaxy Lithium International Limited, registered in Hong Kong.
The Hong Kong investment company will be used as the vehicle to establish the Wholly Foreign Owned Enterprise (WFOE) in the Peoples Republic of China (PRC) which will develop the Jiangsu Lithium Carbonate Project.
The PRC WFOE subsidiary is in the process of being registered this week.
The project application proposal to the Zhangjiagang Free Trade Zone is now completed and will be submitted to the Jiangsu provincial authorities within the next two weeks. The required safety and environmental appraisal reports for the project have also been finalised. After obtaining the respective approval of all three proposals, (i.e. the project application, safety and environmental appraisal report), Galaxy will apply for the approval certificate for establishing the PRC WFOE.
Managing Director, Iggy Tan said Galaxy is well on its way to establishing the company structures required for hosting the value adding downstream business in China.
"We are pleased with the progress that has been made in advancing the development of the Jiangsu Lithium Carbonate Project," said Mr Tan.
"The Company has achieved these important milestones at a record pace in order to be ready for the future lithium industry growth."
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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