Lithium company Galaxy Resources has raised $61 million to help fund development of projects in Argentina and Canada, and to strengthen its balance sheet.
The Perth-based company, which also produces lithium from the Mt Cattlin operations in Western Australia, has raised the funds through a private placement of 113 million shares at 54 cents per share, a 9.2 per cent discount on its February 3 closing price on the ASX.
In an announcement, Galaxy reported that the proceeds would “serve primarily to strengthen the company’s balance sheet and increase its financial flexibility to progress its development work at the Sal de Vida and James Bay projects”.
It added: “The company believes the strong demand for placement shares confirms the underlying strength and robustness of Galaxy’s suite of assets and marks the company as a leading global pure-play lithium company.”
Galaxy is advancing the Sal de Vida lithium and potash brine project in Argentina. The prospect is in South America’s ‘lithium triangle’, which is currently the source of about 60 per cent of global production.
Yesterday, Galaxy appointed its Sal de Vida development team, which it said brought over 200 years of combined industry knowledge to the company.
The James Bay project, in Quebec, contains indicated resources of 11.75 million tonnes at grades of 1.3 per cent Li2O and inferred resources of 10.47Mt at 1.2 per cent Li2O, according to Galaxy.