Galaxy secures more funding
PERTH (miningweekly.com) – Lithium miner Galaxy Resources has extended its existing secured facility with institutional investor OCP Asia by A$16-million, to support working capital requirements as the Mt Cattlin project, in Western Australia, advanced to first revenue.
The maturity date of the new facility was the end of March 2017, and varied from the original A$31-million facility. The new facility will have a coupon rate of 8% a year, and OCP will receive a one-time facility fee of 2% of the amount of the new facility, as well as an establishment fee of 40-million three-year options, with an exercise price of 34.3c.
Galaxy told shareholders on Monday that the new facility would provide the company with adequate cash flow to meet all the capital and operational expenditure requirements in the lead up to the start of production and first shipment at Mt Cattlin.
The first spodumene shipment was scheduled for December of this year.
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