Ravensthorpe development

Emerging lithium producer, Galaxy Resources has announced that it has raised $6.65 million via a capital book build to sophisticated investors of State One Stockbroking.

Emerging lithium producer, Galaxy Resources has announced that it has raised $6.65 million via a capital book build to sophisticated investors of State One Stockbroking.

The book build placement commenced last week when the share price was around 40-42 cents, and consists of the issue of 19 million shares at an issue price of 35 cents per share.

Ten million shares will be issued and an Appendix 3B application for listing will be lodged once all subscription monies have cleared.

According to the company, the balance of the placement (9 million shares) will be issued once an EGM is held in the near future for shareholders to approve the placement.

Galaxy Managing Director Iggy Tan said the funds would be used to progress the next stages in the development of the mine and minerals plant at Ravensthorpe as well as the lithium conversion project in China.

“We will soon commence detailed engineering for the Mt Cattlin project in preparation for long lead item procurement,” Tan said.

“We will also do further extension drilling of the Mt Cattlin resource to establish scope of extension beyond a 15 year mine life.

“The evidence suggests that there are significant further lithium deposits in the vicinity of the established reserves”.

“Galaxy believes it now has sufficient cash on hand to fund the project and the company through to completion of lithium project funding.”

The company recently announced the project funding strategy during the recent RIU Round Up presentation in Sydney.

Tan said that Galaxy has opted to divest a minority direct interest in the project as a way of generating funds that will represent Galaxy’s equity contribution to the project finance.

It is proposed that Galaxy and the incoming joint venture partner will jointly develop and fund the project.

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