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Jiangsu accident costs Galaxy A$66.2m ECE investment

18th January 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - Lithium miner Galaxy Resources on Friday confirmed that it had lost a A$66.2-million investment from the East China Mineral Exploration & Development Bureau (ECE).

In November last year, ECE announced that it would subscribe for some 132.4-million shares in Galaxy, for a gross proceed of A$66.2-million. However, the firm has withdrawn its proposed investment, following an incident at Galaxy’s Jiangsu lithium carbonate plant, which claimed the lives of two workers.

ECE has indicated that it was willing to reconsider the investment when the Jiangsu plant returned to stable operations.

The plant was expected to restart operations in early February.

Galaxy told shareholders on Friday that it would continue its discussions with other potential strategic investors.

Meanwhile, Galaxy also told shareholders that it had settled the first tranche of a A$20-million financing arrangement with Deutsche Bank, comprising an equity placement and call option transactions.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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