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Galaxy draws down final loan

12th September 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Galaxy Resources has drawn down a further A$15-million in a A$30-million loan facility from Sichuan Tianqi Lithium Industries, as part of the sale of its Jiangsu processing plant, in China.

To date, the miner has drawn down A$30-million from the loan facility while it awaited Chinese approvals for the divestment.

In April this year, Galaxy signed a binding share purchase agreement with China’s Tianqi to divest of its Jiangsu battery-grade lithium carbonate plant in a deal worth $230-million.

Under the terms of the transaction, Galaxy would sell its entire share in Hong Kong subsidiary Galaxy Lithium International, which owns the Jiangsu plant, in exchange for $122-million in cash and Tianqi assuming the entire $108-million of Chinese bank debt owed by Galaxy.

The $30-million facility was being made available prior to the completion of the Jiangsu sale, owing to the longer-than-anticipated time required to obtain the necessary regulatory approvals in China.

The sale of the Jiangsu plant has been targeted for completion by October this year.

Edited by Creamer Media Reporter

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