Galaxy Resources says it has received strong interest from institutional investors in a shortfall placement, after its entitlement offer fell massively short of its $47 million target.
The Perth-based lithium miner said today that it raised $14.86 million from investors, exceeding the minimum subscription caveat of $12 million.
The rights issue was extended twice, first in June, then later in July.
Galaxy also confirmed today that its major shareholder, international financing group Deutsche Bank, would take up 7.8 per cent of shortfall placement in addition to the 7.8 per cent of the entitlement offer it had subscribed to, in order to maintain its stake in the company.
Patersons Securities is currently placing the balance of the shortfall, with negotiations with interested investors continuing, Galaxy said.
Issues of shares and options for initial acceptances are expected to occur on or before August 9, Galaxy said.
Galaxy had been planning on retiring $16.7 million of its bank debts if it reached the maximum $46.7 million of the capital raising.
The company’s shares last traded at 23 cents.