Galaxy Finance Update
PERTH, Australia, Sep. 28, 2012, 2012 (Menafn - Canada NewsWire via COMTEX) --Galaxy Resources Ltd (asx:GXY) ("Galaxy" or "the Company") is pleased to announce that the initial repayment of the Company's working capital loan to China Construction Bank Limited ("CCB") has been successfully re-financed to September 2013.
Galaxy stated that it was in the process of negotiating with CCB to refinance the repayment in its condensed consolidated interim financial report for the quarter and half year ended 30 June 2012.
The first repayment of A9.4 million (RMB 60 million) is now due in September 2013.
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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 completed a feasibility study for a proposed 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.
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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
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SOURCE: Galaxy Resources Limited
CorporateIggy Tan Managing Director Galaxy Resources Ltd Tel (office): 61 (0)8
9215 1700 Email:ir@galaxylithium.comMedia Contact Jane Grieve FTI Consulting Tel
(office): 61 (0)8 9485 8888 Tel (mobile): 61 (0)488 400 248
Email:jane.grieve@fticonsulting.com
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