PERTH, W AUSTRALIA, Apr 14, 2011 - (ACN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX: GXY, Galaxy) is pleased to announce it has finalised a A$120 million capital raising via an equity placement.
-- Galaxy finalises a A$120 million capital raising via
equity placement to sophisticated & institutional investors
-- Funds will be used for working capital and ramp up of
Mt Cattlin and Jiangsu lithium carbonate plant, potential
acquisitions and debt repayment
-- Issue price of A$1.10 represents a 13.6% discount to the
30-day VWAP prior to the pricing date
The raising was completed with sophisticated and institutional investor clients of Azure Capital, Morgan Stanley and Helmsec Global Capital (Joint Lead Managers). The placement was priced at A$1.10, which represented a 13.6% discount to the 30-day volume weighted average price (VWAP) prior to the pricing date of 8 April 2011.
The issue was substantially oversubscribed with strong interest coming out of Europe, Asia, US and Australia.
Galaxy Resources Managing Director, Iggy Tan, said the proceeds will strengthen the Company's capital base.
"We will use the funds for working capital and ramp up of our Mt Cattlin spodumene project in Western Australia and Jiangsu lithium carbonate plant in China, which we're due to commission at the end of the quarter. The timely commissioning and ramp up of Galaxy's operations are essential in meeting the imminent surge in demand for lithium carbonate from the EV/E-bike market. The raising will also provide the Company with funds for potential acquisitions and the repayment of some debt."
"We are pleased to welcome a number of particularly high-quality investors onto Galaxy's register, to help us execute our growth strategy and support the company as it moves forward."
The capital raising will be completed in two tranches and allocated as follows:
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Tranche Shares Amount
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Tranche 1 31.0 m A$34.1 m
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Tranche 2 78.1 m A$85.9 m
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Total 109.1 m A$120.0 m
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Tranche 2 is subject to the approval of Galaxy's shareholders in an Annual General Meeting scheduled for 13 May 2011.
Expected Timetable
The expected timetable for the capital raising is as follows:
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Item Expected Timing
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Notice of Meeting for AGM dispatched 15 April 2011
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Issue of Tranche 1 shares 21 April 2011
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Shareholder approval at AGM of Tranche 2 13 May 2011
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Issue of Tranche 2 shares 20 May 2011
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