Galaxy raises A$20m, ponders equity deal
PERTH (miningweekly.com) – Lithium miner Galaxy Resources has raised a further A$20.3-million under the shortfall component of its non-renounceable entitlement offer, bringing the total capital raised from the process to A$37.3-million.
Galaxy said on Thursday that it had been in continuous negotiations with large strategic investment institutions regarding the subscription for a “substantial equity position” in the company.
With this in mind, Galaxy has decided to set aside the remaining A$9.2-million shortfall block.
The proceeds from the raising would be used to partially pay down Chinese lenders, as well as to funding working capital for the Jiangsu lithium carbonate plant and the Sal de Vida lithium brine and potash project.
“With over A$37.5-million raised, or over three times the minimum subscription level under the entitlement offer, we have been able to make significant improvements in the company’s financial position,” said interim MD Anthony Tse.
He noted that the company had also been successful in negotiating significant improvements in the structure of both the Chinese debt and the convertible bonds.
“This is an area we are continuing to work upon, and will make further progressive improvements as we pursue debt reduction initiatives," Tse added.
Meanwhile, Galaxy on Thursday reported that the ramp-up of the Jiangsu plant continued on track, with production run rates currently in excess of 50% of the nameplate capacity of 17 000 t/y.
Breakeven status was expected to be reached later this year while full production rates would be achieved by early 2014.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established on 1 March, 2000, by Barries Barnard, Advanced Fire Suppression Technologies (AFST) and the Advanced Group stands as Sub-Saharan...
VISIT SHOWROOM
Virtual Gas Network supplies compressed natural gas via a virtual gas distribution network.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
