Galaxy Resources Limited (ASX:GXY) Tranche 2 Funding Part Received
Perth, Jan 17, 2011 AEST (ABN Newswire) - Galaxy Resources Ltd (
ASX:GXY) (PINK:GALXF) wishes to announce that A$10.5 million in convertible bonds, comprising part of the second tranche of Galaxy's previously-announced A$91.5 million capital raising, has been settled and funds have been received by the Company today.
The settlement deadline to finalise Fengli's part of the second tranche (comprising A$19 million convertible bonds and a A$30 million equity placement) has been extended by 31 days to 15 February, 2011, due to the very sad and unexpected passing of Mr Wu Yue Ming, President and major shareholder, Fengli Group.
The purpose of the extension is, at Fengli's request, to allow time for appropriate administrative arrangements to be made by Fengli due to Mr Wu's passing to enable it to be able to complete its investment. All parties have agreed to the deadline extension. The extension will have no impact on the total funds raised or the terms of the capital raising.
The first tranche of the capital raising comprising A$32 million in convertible bonds was settled on 19 November 2010.
As previously advised, this capital raising as well as the Company's intentions to list on the Hong Kong Stock Exchange will provide the platform for Galaxy to become a vertically integrated lithium company, from raw product lithium production through to chemical processing and lithium-ion battery manufacturing.
Galaxy Resources Managing Director, Mr Iggy Tan, said Galaxy has extended its deepest condolences to the Wu family and the Fengli Group.
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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