Perth-based Galaxy Resources Ltd has raised $1.79 million via the early staged exercise of unlisted options, to fund the completion of a feasibility study on its Mt Cattlin tenement in Ravensthorpe.
Perth-based Galaxy Resources Ltd has raised $1.79 million via the early staged exercise of unlisted options, to fund the completion of a feasibility study on its Mt Cattlin tenement in Ravensthorpe.
A number of option holders have agreed to complete the early exercise of options during the March, June and September quarters of 2008.
Galaxy is a diversified exploration company with interests in five projects in Western Australia covering a range of commodities including lithium, tantalum, base metals (copper-zinc-nickel), gold, iron ore, manganese, talc, rare earths and uranium.
These agreements secure additional cash which will be used to complete the bankable feasibility study on the development of the Mt Cattlin spodumene/ tantalum resource in Ravensthorpe, fund further drilling to extend the Mt Cattlin resource beyond the resource estimate announced on December 7, 2007 and to progress exploration on its other tenements.
In addition, the company intends to expand the scope of the Mt Cattlin Bankable Feasibility Study beyond the production of spodumene and tantalum concentrates to include production of lithium carbonate (the key feedstock for lithium battery production) either at Ravensthorpe or in JV with an offshore partner.
The options to be exercised comprise:
- 6.7 million unlisted options exercisable at $0.20 per option which, when exercised, will, raise $1,34 million
- 5.22 million of the options, held by directors, former directors and officers of the company, which expire on 30 September 2008, will raise $1.04 million, and 1.5 million options held by the managing director, which expire on 6 February 2009, will raise $450,000.
- In addition, Galaxy managing director Michael Fotios has also undertaken to exercise 1.5 million options exercisable at $0.30 per option, which expire on 6 February 2010, to raise a further $450,000 within this time frame if required.
Mr Fotios said the funding would reduce future capital raisings and minimise dilution during a time of strong growth for Galaxy during which period the value of Mt Cattlin will be accurately determined.
"The early exercise of these options is a sign of strong support by the directors/management and their belief in the future growth potential of the company's projects," Mr Fotios said.
He said Galaxy was in the early stages of reviewing project funding alternatives including, in exchange for marketing rights to spodumene concentrate and/or lithium carbonate, funding via a strategic partnership specifically for the Mt Cattlin feasibility studies and the development of a mine, spodumene/tantalum concentrator and lithium carbonate refinery.
