Creat Resources Hld CRHL Major Asset Sale

  Creat Resources Hld (CRHL) - Major Asset Sale

RNS Number : 3551R
Creat Resources Holdings Ltd
16 November 2012


16 November 2012

                       Creat Resources Holdings Limited

                          ("CRHL" or "the Company")

                               Major Asset Sale



Creat Resources Holdings Limited announces  that between 13 November 2012  and 
15 November 2012, the Company disposed  of 256,704 shares of Galaxy  Resources 
Limited ("Galaxy") in aggregate at an average price of AUD0.498 per share (the
"Disposal").



The Company  has to  date invested  in the  shares of  Galaxy as  a long  term 
strategic investment.  Prior  to the  Disposal,  the Company  held  38,091,616 
shares in Galaxy representing 7.1 per cent. of Galaxy's issued share  capital. 
As announced on 5 November 2012, as  at 30 June 2012, the last financial  year 
end,  the  holding  of  38,091,616  shares  had  a  reported  fair  value   of 
AUD22,283,595, or AUD0.585 per share.



Following the  Disposal, the  Company will  hold 37,834,912  shares in  Galaxy 
representing 7.052 per cent. of Galaxy's issued share capital.



The average selling  price of AUD0.498  per share is  below the last  reported 
fair value of  Galaxy of AUD0.585  per share,  due to a  decrease in  Galaxy's 
share price since the year end.



Reasons for the Disposal



On 17 October  2012, the Company  announced that  it will dispose  of all  the 
interests it holds in the mining tenements around Zeehan, Tasmania,  Australia 
("Mining Assets Sale") for a total consideration of AUD4 million. The  Mining 
Assets Sale is expected to be completed  in the first quarter of 2013.  Prior 
to such  completion,  the Company  requires  working capital  for  its  normal 
operations and to honor its commitments under these tenements. Therefore,  the 
reason for  the Disposal  is to  raise short  term funding  to facilitate  the 
Company to continue its operations through the first quarter of 2013.



The Board points out that:

1. The Company's investment strategy regarding Galaxy remains unchanged;

2. The Disposal only represents a small portion of the Company's holding  in 
Galaxy;

3. The proceeds  from the Disposal  are expected to  be received via  normal 
share trading settlement channels and will be used as working capital;

4. Further disposal  of Galaxy shares  is expected to  continue in the  near 
future in  order  to meet  with  projected working  capital  requirements  and 
aggregate disposal is expected to be approximately 1,000,000 shares of Galaxy.





For further information please visit www.creatresources.com or contact:

Creat Resources Holdings Limited     Tel: +61 3 6471 6228
Morris R. Hansen, Company Secretary
Daniel Stewart & Company
                                     Tel: +44 20 77766550
Paul Shackleton
Emma Earl



About Creat Resources Holdings Limited

CRHL is an early stage mining exploration company holding 4 Exploration
Licences and 3 Retention Licences covering 109 square kilometres around the
mineral rich Zeehan area in western Tasmania. CRHL also has a strategy of
acquiring assets in interesting resources companies that complement or
supplement the Company's exploration activities. CRHL is a major shareholder
of Galaxy Resources Limited ("Galaxy") with an interest of 7.52%. Galaxy is an
Australian-based integrated lithium mining, chemicals and battery company
listed on the Australian Securities Exchange (Code: GXY) and is an S&P/ASX 300
Index Company. Galaxy plans to be one of the world's largest lithium carbonate
producers and is positioning itself to be involved in every step of the
lithium supply chain.

About Galaxy Resources Limited

Galaxy Resources Limited  ("Galaxy") is  a Western  Australian S&P  / ASX  300 
Index company which plans  to become one of  the world's leading producers  of 
lithium compounds  - the  essential component  for powering  the world's  fast 
expanding fleet of hybrid and electric cars. Galaxy's Mt Cattlin mine aims  to 
be  the  world's  second  largest  producer  of  lithium  mineral  concentrate 
globally, and  through the  development of  its 17,000  tpa lithium  carbonate 
plant in Jiangsu province, Galaxy expects to be one of the largest and  lowest 
cost lithium compound producers  in China. Lithium  compounds such as  lithium 
carbonate are forecast to be in short supply against high future demand due to
advances in long life batteries and sophisticated electronics including mobile
phones and computers. Galaxy has positioned itself to meet this lithium future
by not only mining  the lithium, but also  by downstream processing to  supply 
lithium carbonate to the expanding Asian market.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

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