PERTH, Australia, Nov. 25, 2013 /CNW Telbec/ - Galaxy Resources Ltd
(ASX: GXY) ("Galaxy" or the "Company") announces that a conversion
window for the A$61.5 million in convertible bonds ("Convertible
Bonds") on issue closed on 22 November 2013. Of the outstanding
Convertible Bonds, A$1.5 million were converted into equity at $0.08
per ordinary share, upon the same basis as the recent Entitlement
The remaining A$60 million in Convertible Bonds will now revert to a two
year maturity date of 19 November 2015, with the coupon rate increased
from 8% to 10% per annum. No other terms change.
The conversion window resulted from the restructure agreement reached
with the Convertible Bond holders as announced on 26 July 2013. This
agreement amended the final repayment date to Convertible Bond holders
from November 2013 to November 2015 and gave Galaxy and the Convertible
Bond holders the flexibility to repay part of the Convertible Bonds
with Galaxy shares and options on the same basis as the recently closed
Entitlement Offer during the 3 business day window up to and including
22 November 2013.
With the conversion window now closed the right to convert the
Convertible Bonds into equity on the same terms as the Entitlement
Offer (for either Galaxy or the Convertible Bond holders) has now
expired. The Convertible Bonds now revert to the previous conversion
terms, with an estimated conversion price of $0.922 per share.
Galaxy Interim Managing Director, Anthony Tse, said that he was pleased
that the outcome of the restructuring of the Convertible Bonds was now
"We feel this is a good outcome for the Company. The maturity for the
Convertible Bonds is now two years at a reasonable coupon rate for
Galaxy " said Mr Tse.
"We will continue to lengthen the debt maturity profile and deleverage
the Company on an opportunistic basis as and when circumstances allow.
The significantly improved financial management and discipline combined
with the continued improvement in the operational performance at the
Jiangsu Lithium Carbonate plant we consider should add significantly to
Company value in the short to medium term."
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 a
lithium producer listed on the Australian Securities Exchange (Code:
Galaxy has built an advanced and fully-automated Lithium Carbonate
production facility in Jiangsu Province, China ("Jiangsu Plant"). The
Jiangsu Plant has a name-plate capacity of 17,000 tpa, is primarily
focused on producing battery grade lithium carbonate, and is aiming to
become the largest producer in the Asia Pacific region and the fourth
largest in the world.
Galaxy is currently advancing plans to develop the Sal de Vida Lithium
and Potash Brine Project ("Sal de Vida") in Argentina, which is
situated in the Lithium Triangle, a region where Chile, Argentina and
Bolivia meet, and presently accounts for 60% of global lithium
production. Sal de Vida has excellent promise as a future low cost
The Company also owns the Mt Cattlin Spodumene Mine near Ravensthorpe in
Western Australia and the James Bay Lithium Pegmatite Project in
Lithium compounds are used in the manufacture of ceramics, glass,
electronics and are an essential ingredient in producing battery
materials such as cathode and electrolyte, in the manufacture of long
life lithium-ion batteries, which are used in consumer electronics,
power tools, electric bikes, hybrid and electric vehicles. Anticipating
the growing demand in coming years, Galaxy is positioning itself to
become a major producer of lithium products.
Caution Regarding Forward Looking Information.
This document contains forward looking statements concerning Galaxy.
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 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 9485 8888
Tel (mobile): + 61 (0) 420 945 291