Photo by: Bloomberg
PERTH (miningweekly.com) – Lithium miner Galaxy Resources will raise some A$61-million through a share placement to institutional and sophisticated investors to fund the development of its Sal de Vida and James Bay projects, in Argentina and Canada respectively.
Galaxy on Wednesday told shareholders that some 113-million new shares, at 54c apiece, would be issued through a private placement. The offer price represented a 9.2% discount to the company’s closing price on February 3.
The shares will be issued within the company’s placement capacity and, as such, will not require shareholder approval.
Galaxy said the proceeds of the placement, as well as existing funds available to the company, will serve primarily to strengthen its balance sheet and increase financial flexibility to progress the development work at the two projects, as well as for general corporate purposes.
Galaxy earlier this week announced that site work at the Sal de Vida lithium project was expected to start before the end of the month, with the $375.5-million project expected to produce 25 000 t/y of battery-grade lithium carbonate and 95 000 t/y of potash over a 40-year mine life.