/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
PERTH, Australia, Jan. 17, 2013 /CNW Telbec/ - Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") confirms it has been advised by East China Mineral Exploration &
Development Bureau ("ECE") that its Board has withdrawn from ECE's proposed investment in Galaxy
(announced to ASX on 5 November 2012). ECE has indicated to Galaxy it
is willing to re-consider the investment when Galaxy's Jiangsu Lithium
Carbonate Plant ("Jiangsu Plant") in China returns to stable operation.
Galaxy is continuing discussions with potential strategic investors and
will keep the market informed of their progress.
Galaxy also reports that it has settled the first tranche of an A$20
million (before costs) financing arrangement with Deutsche Bank,
comprising equity placement and call option transactions.
The Jiangsu Plant is on track to recommence operations in early February
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
facility. 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.
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)488 400 248