PERTH, Australia, July 4, 2012 /CNW/ - Galaxy Resources Limited (ASX: GXY, "Galaxy") is pleased to advise that the plan of arrangement with Lithium One Inc (TSX-V: LI, "Lithium One") has been successfully completed. Following the completion of the
Arrangement, an application was filed to have the Lithium One Common
Shares de-listed from the TSX-V.
Galaxy Managing Director, Iggy Tan, said that Galaxy has now boosted its
global lithium resource base and become a major global lithium company
with assets in Australia, China, Canada and Argentina.
"Galaxy will require more lithium resources over the next few years, and
Sal de Vida along with James Bay has added to our existing Australian
resource inventory. Together with our China processing assets we now
have ample resources to continue to grow the lithium business and drive
the long term value of the company.
With Galaxy's expertise across project development and lithium mining,
processing and marketing, we would be able to fast track development of
Sal de Vida as we did at our Mt Cattlin lithium mine and Jiangsu
lithium carbonate plant."
About Galaxy (ASX: GXY)
Galaxy Resources Ltd ("Galaxy") is an Australian-based global lithium
company with lithium production facilities, hard rock mines and brine
assets in Australia, China, Canada and Argentina. The Company is an
integrated lithium mining, chemicals and battery company listed on the
Australian Securities Exchange (Code: GXY) and is a member of the
S&P/ASX 300 Index.
Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western
Australia where it mines lithium pegmatite ore and processes it on site
to produce a spodumene concentrate and tantalum by-product. At full
capacity, Galaxy will process 137,000 tpa of spodumene concentrate
which will feed the Company's wholly-owned Jiangsu Lithium Carbonate
Plant in China's Jiangsu province. The Jiangsu plant has commenced
production and will produce 17,000 tpa of battery grade lithium
carbonate, the largest producer in the Asia Pacific region and the
fourth largest in the world.
Galaxy is also advancing plans to develop the Sal de Vida (70%) lithium
and potash brine project in Argentina situated in the lithium triangle
(where Chile, Argentina and Bolivia meet) which is currently the source
of 60% of global lithium production. Sal de Vida has excellent promise
as a future low cost brine mine and lithium carbonate processing
The Company completed a feasibility study for a lithium-ion battery
plant, to produce 620,000 battery packs per annum for the electric bike
(e-bike) market. The Company also owns the James Bay (100%) Lithium
Pegmatite Project in Quebec, Canada.
Lithium compounds are used in the manufacture of ceramics, glass,
electronics and are an essential cathode material for long life
lithium-ion batteries used to power e-bikes and hybrid and electric
vehicles. Galaxy is bullish about the global lithium demand outlook and
is positioning itself to achieve its goal of being involved in every
step of the lithium supply chain.
Caution Regarding Forward Looking Information
Forward-looking statements are not statements of historical fact and
actual events and results may differ materially from those described in
the forward looking statements as a result of a variety of risks,
uncertainties and other factors. Forward-looking statements are
inherently subject to business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause the
Company's actual results to differ materially from those expressed or
implied in any forward-looking information provided by the Company, or
on behalf of, the Company. Such factors include, among other things,
risks relating to additional funding requirements, metal prices,
exploration, development and operating risks, competition, production
risks, regulatory restrictions, including environmental regulation and
liability and potential title disputes.
Forward looking statements in this document are based on Galaxy's
beliefs, opinions and estimates of Galaxy (and Lithium One) as of the
dates the forward looking statements are made, and no obligation is
assumed to update forward looking statements if these beliefs, opinions
and estimates should change or to reflect other future developments.
Not For Release in US
This announcement has been prepared for publication in Australia and may
not be released in the U.S. This announcement does not constitute an
offer of securities for sale in any jurisdiction, including the United
States, and any securities described in this announcement may not be
offered or sold in the United States absent registration or an
exemption from registration under the United States Securities Act of
1933, as amended. Any public offering of securities to be made in the
United States will be made by means of a prospectus that may be
obtained from the issuer and that will contain detailed information
about the company and management, as well as financial statements.
SOURCE Galaxy Resources Limited
For further information:
Galaxy Resources Ltd
Tel (office): +61 (0)8 9215 1700
Tel (office): +61 (0)8 9386 1233
Tel (mobile): +61 (0)420 945 291