Galaxy Resources Limited (ASX:GXY) Receives A$26 Million Placement Funds Into Escrow Account From Creat Group
Perth, April 22, 2010 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) has been advised by AIM listed Creat Resources Holdings Limited (LON:CRHL) that it has now received A$26 million from its majority shareholder, Creat Group Co Limited (Creat Group), to complete the remaining Galaxy placement subscription.
The funds have been deposited into an escrow account established by CRHL and Galaxy. Subject to final approval from CRHL shareholders at an AGM to be held on 28 April, the placement shares will be issued to CRHL allowing Galaxy unconditional access to the funds.
Galaxy's current cash balance is approximately A$47 million and the additional placement funds will increase cash reserves to A$73 million.
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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