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Galaxy Resources Limited (ASX:GXY) China Development Bank Joins Loan Syndicate
Perth, Dec 4, 2009 AEST (ABN Newswire) - Galaxy Resources Limited (ASX:GXY)(PINK:GALXF) is pleased to announce that China Development Bank Corporation (CDB), China's leading financial institution, has joined the project finance syndicate lead by Austrian bank, Raiffeisen Zentralbank Osterreich AG (RZB).
Both banks, RZB and CDB have conducted their respective due diligence on the Mt Cattlin and Jiangsu Projects and have now approved the loan for A$130 million (US$ 105 million).
CDB is an international Chinese bank established in 1994 with total assets of 3,821 billion RMB. During the recent wave of globalisation, the bank has taken the opportunity to enhance its role and reputation on the global stage. CDB has played a prominent role in the development of China's economy and society.
Galaxy Managing Director, Mr Iggy Tan said that attracting a project loan facility from two independent international banks of the calibre of RZB and CDB is real benefit for the Company.
"We are delighted to have RZB and CDB as our new commercial finance partners and having recently achieved our first drawdown of US$20 million, we look forward to accelerating the development of our projects and generating a return for our shareholders." Mr Tan said.
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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