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
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
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
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
DISZQLFFLFFFFBZ -0- Nov/16/2012 14:16 GMT
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