Galaxy Recommences Capital Raising

/NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR TO US PERSONS/ 
Highlights 


    --  Galaxy re-launches 1 for 1 pro-rata non-renounceable
        entitlement issue at $0.08 per share to raise up to $46.7
        million (before costs)
    --  Supplementary Prospectus and revised timetable attached
    --  Offer closing 22 July 2013
    --  Major shareholders endorse re-launch of Entitlement Issue,
        proactive discussions continuing

PERTH, Australia, July 2, 2013 /CNW Telbec/ - The Board of Galaxy Resources 
Ltd (ASX: GXY) ("Galaxy" or "the Company") advises shareholders it has 
recommenced a 1 for 1 pro-rata non-renounceable capital raising ("Entitlement 
Offer" or the "Offer") at $0.08 per share to raise up to $46.7 million (before 
costs).

A Supplementary Prospectus is attached to this document and will, along with 
the Prospectus, be mailed to eligible shareholders. The Supplementary 
Prospectus, dated 2 July 2013, is intended to be read in conjunction with the 
Prospectus, issued 27 May 2013. Other than as set out in the Supplementary 
Prospectus, all details in relation to the Prospectus and the Offer remain 
unchanged.

The Offer will now close on 22 July 2013 at 7.00pm (AEST).

It remains Galaxy's intention to raise up to approximately $46.7 million 
(before costs) through the Offer. As stated previously, proceeds will be used 
for corporate working capital (including interest payments), costs associated 
with the Sal de Vida Lithium and Potash Brine Project, to reduce debt levels 
and re-structure Galaxy's balance sheet.

Galaxy interim Managing Director Anthony Tse said: "After a short delay, our 
major shareholders have endorsed the recommencement of this process and the 
appointment Martin Rowley, co-founder of First Quantum Minerals and former 
Chairman of Lithium One Inc, to our Special Management Committee. Proactive 
discussions with those groups are to continue throughout the capital raising 
process."

Eligible Galaxy shareholders are invited to participate in the Offer, which is 
a one (1) for one (1) pro-rata Offer of up to 584,355,501 new fully paid 
ordinary shares ("New Shares") at an offer price of $0.08 per New Share. 
Applicants will also receive three (3) free attaching New Options for every 
two (2) New Shares subscribed. As set out in the Supplementary Prospectus, the 
Minimum subscription under the Offer is now $12 million. The Offer is not 
underwritten.

The New Shares to be issued under the Offer will rank equally with the 
existing Galaxy shares. Subject to satisfying the requirements for quotation, 
the New Options will also be tradeable on ASX, enabling New Option holders to, 
potentially realise value for the New Options through selling them on ASX if 
they so choose. Shareholders who choose not to take up their entitlement will 
receive no value in respect of their entitlements and their shareholding in 
the Company will be diluted.

Patersons Securities Limited is Lead Manager to the Entitlement Offer. 
Deutsche Bank is the Corporate Adviser leading debt refinancing and potential 
non-core asset sales initiatives.

The revised timetable of key dates is set out below:

 _____________________________________________________________________
|Event                                  |Date**                       |
|_______________________________________|_____________________________|
|Lodgement of Prospectus                |27 May 2013                  |
|_______________________________________|_____________________________|
|"Ex" Date                              |30 May 2013                  |
|_______________________________________|_____________________________|
|Record Date to determine Entitlements  |5 June 2013                  |
|_______________________________________|_____________________________|
|Lodgement of Supplementary Prospectus  |2 July 2013                  |
|_______________________________________|_____________________________|
|Prospectus and Supplementary Prospectus|8 July 2013                  |
|with Application Form dispatched       |                             |
|_______________________________________|_____________________________|
|Offer opens for receipt of Applications|8 July 2013                  |
|_______________________________________|_____________________________|
|Closing date for acceptances           |22 July 2013 at 7.00pm (AEST)|
|_______________________________________|_____________________________|
|New Securities quoted on a deferred    |23 July 2013                 |
|settlement basis                       |                             |
|_______________________________________|_____________________________|
|Allotment and issue of New Securities  |30 July 2013                 |
|_______________________________________|_____________________________|
|Trading of New Securities expected to  |31 July 2013                 |
|commence                               |                             |
|_______________________________________|_____________________________|

** The above dates are indicative only. The Company, in conjunction
with Patersons, reserves the right vary the above dates, subject to ASX
Listing Rules and Corporations Act.

Eligible Shareholders will receive a copy of the Prospectus and Supplementary 
Prospectus and application form shortly. You must follow the instructions in 
the application form to take up your entitlements.

If you have any questions, please call the Company Secretary on +61 8 9215 
1700 at any time between 8.30am to 5.30pm (WST), Monday to Friday before the 
Offer closes, or consult your stockbroker or professional adviser.

A copy of the Prospectus and Supplementary Prospectus can be viewed on the 
website of the ASX or alternatively at the Company's website at 
www.galaxylithium.com.

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.

Corporate  Anthony Tse Managing Director Galaxy Resources Ltd Tel 
(office): +61 (0)8 9215 1700 Email:ir@galaxylithium.com

Media Contact Jane Munday FTI Consulting Tel (office): +61 (0)8 9485 8888 
Tel (mobile): + 61 (0)488 400 248 Email:jane.munday@fticonsulting.com

SOURCE: Galaxy Resources Limited

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CO: Galaxy Resources Limited
NI: MNG CHM FIN MNA 

-0- Jul/02/2013 09:01 GMT


 
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