PERTH (miningweekly.com) – Lithium miner Galaxy Resources has successfully completed its share placement and institutional entitlement offer to raise an initial A$124-million of its planned A$161-million.
Galaxy earlier this week announced plans to raise A$161-million through a 1-for-14 fully underwritten pro-rata accelerated non-renounceable entitlement offer and institutional placement.
The institutional placement consisted of some 65-million shares, priced at A$1.70 each, to raise an initial A$111-million, while the entire entitlement offer will consist of a further 29-million shares, to raise some A$50-million.
The institutional component of the entitlement offer accounted for eight-million shares, and raised some A$13-million.
“We are delighted with the strong response we have received for the equity financing from a broad range of high quality, domestic and international institutions which we believe, underlines the quality of our asset portfolio,” said CEO Simon Hay.
“Securing these funds is an important milestone for Galaxy as we seek to commit to execute and develop Sal de Vida into a successful, lowest-quartile-cost lithium brine operation.
“The equity financing proceeds will also be used to accelerate James Bay to a construction-ready status, which Galaxy believes is timely given the project’s high-grade nature and location, positioning Galaxy to take advantage of the expected growth in electric vehicle demand in Europe and North America.”
A fully underwritten retail entitlement offer, which will open on December 1 and close on December 10, is expected to raise a further A$37-million.