Galaxy Resources will look for a project partner to help develop its $68 million Mt Cattlin lithium project as it completes a $6.65 million capital raising.
Managing director Iggy Tan told delegates at a Sydney conference the company has opted to divest a minority interest in the project as a "way of generating funds that will represent Galaxy's equity contribution to the project finance".
"It is proposed that Galaxy and the incoming joint venture partner will jointly develop and fund the project," he said.
Meantime the company has raised $6.65 million book build to investors of State One Stockbroking.
Around 19 million shares were issued at 35 cents each. Shares in Galaxy last traded at 49 cents at 14:34 AEST, down three cents.
Funds raised will be used to progress the next stages of Mt Cattlin, near Ravensthorpe, as well as the lithium conversion plant in China.
""We will soon commence detailed engineering for the Mt Cattlin project in preparation for long lead item procurement," Mr Tan said.
"We will also do further extension drilling of the Mt Cattlin resource to establish scope of extension beyond a 15 year mine life.
"The evidence suggests that there are significant further lithium deposits in the vicinity of the established reserves".
