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Galaxy's entitlement offer closes

8th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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KALGOORLIE (miningweekly.com) – Lithium miner Galaxy Resources has raised some A$14.68-million through its one-for-one rights issue.

The rights issue was launched in May, with the hopes of raising up to A$47-million to fund the ramp-up of the Jiangsu plant, in China.

The company said on Thursday that it was finalising a number of guaranteed commitments from its shareholders, which would be taken up in the shortfall placement. Major shareholder commitments included Deutsche Bank’s subscription for its 7.8% share of the entitlement offer and shortfall placement to maintain its percentage interest in Galaxy.

In addition, Galaxy noted that the majority of a A$5-million subordinate short-term facility with a lending consortium of Galaxy shareholders would also be converted to equity, as part of the shortfall.

The company and its adviser Patersons Securities were currently placing the balance of the shortfall and were in continuous discussions with potential new institutional investors which had indicated strong interest.

The successful completion of the entitlement offer would allow the company to reduce its gearing levels and, along with debt refinancing, would allow Galaxy to restructure its balance sheet.

Edited by Creamer Media Reporter

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