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HONG KONG, Dec 23, 2010 - (ACN Newswire) - The Directors of Galaxy Resources Limited (ASX: GXY, "Galaxy") are pleased to advise that a General Meeting of Shareholders today overwhelmingly approved the Company's plans to list on the Hong Kong Stock Exchange ("HKEx") in the first quarter of 2011.
In addition, shareholders approved the issue of up to 21,582,733 fully paid, ordinary shares in the Company to strategic investor Fengli Group (Hong Kong) Co., Ltd, at a price of A$1.39 per share.
The $260 million capital raising and Hong Kong listing will provide the platform for Galaxy to become a vertically integrated company, from raw product lithium production through to chemical processing and battery manufacturing.
The rationale for the listing in Hong Kong is tied to the strong appetite for lithium investment from Chinese and international investors, along with China being Galaxy's central market for lithium carbonate.
Managing Director, Mr Iggy Tan, said it was pleasing to see such strong support for the Company's growth strategy.
"Galaxy's compelling 'China story', encompassing the downstream lithium carbonate plant in Jiangsu coupled with the Mt Cattlin resource, is well understood by investors in Hong Kong," Mr Tan said.
"The Hong Kong Stock Exchange listing marks another exciting growth phase for the Company with our enormous potential to deliver significant value for existing and new Galaxy shareholders."
Funds from both the capital raising and the Fengli share issue will be used to repay Galaxy's US$105M loan facility; to develop its lithium-ion battery project, to ramp-up Mt Cattlin project working capital; and potential lithium-related acquisitions.
This announcement has been prepared for publication in Australia and may not be released in the U.S. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements.
Contact:
Iggy Tan
Managing Director
Galaxy Resources
Tel (office): 08 9215 1700
Australia Media Contact
Jane Grieve
FD
Tel (office): 08 9386 1233
Tel (mobile): 0488 400 248
Email: jane.grieve@fd.com
Greater China & Asia Media Contact
Cindy Lung
Strategic Financial Relations Limited
Tel (office): (852) 2864 4867
Tel (mobile): (852) 9282 4640
Email: cindy.lung@sprg.com.hk
Topic: Press release summary
Source: Galaxy Resources Limited
Sectors: Daily Finance, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network
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