12/04/2012 - 09:45

Galaxy taps market for $30m

12/04/2012 - 09:45

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Galaxy taps market for $30m

Galaxy Resources stocks have slipped after the lithium miner completed a $30 million capital raising, $20 million under what it had originally targeted.

Galaxy announced today it had completed the share placement, priced at 77 cents per share, which will be used to support its plan to merge with Canada's Lithium One to create a $500 million global lithium miner.

The Perth-based company announced earlier this month it sought to raise $50 million in conjunction with the merger proposal.

Galaxy Resources managing director Iggy Tan said the company's major shareholder, M&G group, was strongly supportive of the proposed merger and took a substantial portion of the placement.

The company also announced today it had tweaked its initial offer of 1.8 Galaxy shares for each Lithium One share, which valued the target at approximately $108 million.

Galaxy said it had adjusted its offer to 1.96 shares for each Lithium One share.

At 9:30AM WST, Galaxy stocks had dropped 12.4 per cent, trading at 77.5 cents.

The company said it would now launch a $3 million share purchase plan for existing shareholders, also priced at 77 cents per share.

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