Perth-based Galaxy Resources Ltd plans to raise $2.3 million to boost cash reserves towards its bankable feasibility study into its Mt Cattlin tenement in Ravensthorpe.
Perth-based Galaxy Resources Ltd plans to raise $2.3 million to boost cash reserves towards its bankable feasibility study into its Mt Cattlin tenement in Ravensthorpe
A total of 5 million fully paid ordinary shares will be placed to institutional and high net worth clients of State One Stockbroking Ltd at an issue price of 45 cents ($0.45) per share.
Funds raised from the placement will supplement existing cash resources and be applied to the Mt Cattlin Bankable Feasibility Study ("BFS") which was recently extended to include the viability of lithium carbonate production.
Funds will also be used to accelerate activities at the Company's other key projects including:
McMahon (pyrite for production of sulphuric acid, power and water);
West Kundip (manganese);
Elverdton JV (Pioneer Nickel 75%, base metals, manganese); and
Shoemaker (iron ore / base metals).
The lithium concentrate aspect of the Mt Cattlin BFS is due for completion by the end of the September, whilst the lithium carbonate aspect is due for completion by the end of December.
Elsewhere, a scoping study on the McMahon pyrite to sulphuric acid project is due for completion by early July. At Shoemaker, ground activities have commenced with the completion of further rock chip sampling, ground gravity survey and quickbird satellite photography focussed initially on hematite iron mineralisation.
Funding for the lithium concentrate stage of the Mt Cattlin BFS has been previously secured by the early staged exercise of 6,725,000 unlisted options exercisable at $0.20 and expiring on 30 September 2008 by directors, former directors, and officers. 1,750,000 of the options have already been exercised to raise $350,000 and the balance (5,025,000 shares exercisable for a gross amount of $1,005,000) will be exercised as required prior to the end of September.
The placement is being made in accordance with the "excluded offer" provisions of the Corporations Act, 2001. A placement fee of 5% of funds raised is payable to State One Stockbroking Limited.
The shares issued pursuant to the placement will rank equally in all respects with the existing ordinary shares of the Company. Appendix 3B application for quotation of the new shares will be lodged once all application funds have cleared and allotment of the new shares is completed. No director or their associates are participating in the placement issue.