/NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS/
- Martin Rowley, First Quantum Minerals co-founder and former Lithium One Inc. Chairman, appointed to Special Management Committee
- Mr Rowley's appointment endorsed by major shareholders following the resignation of previous Managing Director
- Special Management Committee formed to oversee a review of the Company's current business, operations and board composition
- Board, Special Management Committee and major shareholders endorse re-launch Entitlement Issue
PERTH, Australia, June 27, 2013 /CNW Telbec/ - Galaxy Resources Ltd (ASX: GXY) ("Galaxy" or "the Company") advises that it has established a Special Management Committee, as an advisory committee reporting to the Galaxy Board, consisting of interim Managing Director Anthony Tse, Non-executive Director Xiaojian Ren, Galaxy executive Charles Whitfield, and Martin Rowley. The scope of the Committee's work will focus on various strategic initiatives, including a general review of the Company's business, operations and financial structuring.
Interim Managing Director, Anthony Tse said: "The establishment of a Special Management Committee and the appointment of Martin Rowley are of strategic importance during this key stage of development for the Company. Mr Rowley brings a wealth of management experience, along with a proven track record of successfully developing companies into sector leaders within their industry. As well as his role on the Special Committee, he will assist in a review of the Board structure with the objective of evaluating and identifying the optimal composition and skill set required to best serve the strategy and development of Galaxy going forward."
Mr Rowley was a co-founder of TSX and LSE-listed First Quantum Minerals Ltd and is currently that company's Executive Director, Business Development. First Quantum is one of the world's largest copper production companies and the owner of the Ravensthorpe nickel project in Western Australia with a market capitalisation of approximately $9 billion. He was previously Chairman of Lithium One Inc., which was acquired by Galaxy by way of a Plan of Arrangement in July 2012. He is also non-executive Chairman and a director of Forsys Metals Corp, a TSX-listed company in the uranium sector.
Mr Ren is a co-founder, Executive Director and the CEO of Creat Group. He has significant experience in the China banking and finance sector having previously served with the Agricultural Bank of China at the Jiangxi Provincial level as well as the corporate headquarters. The Creat Group was established in 1992 and has made some significant investments in leading corporations across China, including Henan Pinggao Electric (listed on the Shanghai Stock Exchange), Yantai North Andre Juice (a world leading producer of fruit juice concentrate and listed on the Hong Kong Stock Exchange), Shanghai RAAS (a leading blood products manufacturer and listed on Shenzhen Stock Exchange), as well as other manufacturing, real estate and nonferrous metals and mining companies.
Following the appointment of Mr Rowley, the Galaxy Board, Special Management Committee and the Company's major shareholders have agreed to proceed with the Entitlement Issue.
Shareholders will be advised of further arrangements around the Entitlement Issue, with a Supplementary Prospectus to be issued to the market shortly.
| 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: GXY) and is a member of the S&P/ASX 300 Index.
Galaxy wholly owns the Jiangsu Lithium Carbonate Plant in China's Jiangsu province. The Jiangsu Plant will eventually produce 17,000 tpa of battery grade lithium carbonate, becoming 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 owns Mt Cattlin (100%) spodumene project near Ravensthorpe in Western Australia and 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 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:
Interim Managing Director
Galaxy Resources Ltd
Tel (office): +61 (0) 8 9215 1700
Email: [email protected]
Tel (office): +61 (0) 8 9485 8888
Tel (mobile): + 61 (0) 488 400 248
Email: [email protected]