Galaxy raises $61m for Americas ventures

Galaxy Resources has set the bar for the largest capital raising undertaken by a WA-based company for 2017, announcing a $61 million capital raising to fund development work at its Sal de Vida lithium project in Argentina.

After several days of market speculation, Galaxy confirmed this morning that it had received commitments from existing and new investors for the $61 million raising, by way of the placement of 113 million shares at 54 cents each.

The price of the raising represents a 9.2 per cent discount to Galaxy’s last closing price.

“The proceeds of the placement, together with existing funds available to Galaxy, will serve primarily to strengthen the company’s balance sheet and increase its financial flexibility to progress its development work at the Sal de Vida and James Bay projects, as well as for general corporate purposes,” the company said in a statement.

The James Bay project is located in Canada, while the Sal de Vida project is in Argentina.

Galaxy earlier this week announced it had bolstered its development team at Sal de Vida with new appointments.

Canaccord Genuity acted as lead manager to the raising.

Galaxy shares were 4.2 per cent lower to 57 cents each this morning.