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.
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