Galaxy borrows $US40m to refinance debt

Galaxy Resources has secured a $US40 million ($A53 million) facility with BNP Paribas to square off its existing owings to investment group OCP Asia.

Perth-based Galaxy, which recently moved from explorer to miner after restarting operations at its Mt Cattlin lithium mine near Ravensthorpe, will draw down on the facility before the end of the month, in order to meet upcoming debt repayment deadlines with OCP.

Galaxy has borrowed $47 million from OCP to meet capital costs associated with the Mt Cattlin mine.

“This new BNP Paribas facility represents yet another positive step forward for the company as an industry leading lithium producer,” Galaxy managing director Anthony Tse said.

“It further strengthens Galaxy’s balance sheet enabling increased financial flexibility, and establishes what we anticipate will be a long-term relationship with a tier one international bank to support our growth strategy.

“We are extremely pleased to have executed this facility, on very competitive terms with BNP, which provides for improved financing costs to the company and we look forward to working closely with them in the years ahead.”