Galaxy Resources Ltd
(ASX:GXY) is set to raise $30 million through a convertible note facility to a strategic China-based investor.
The emerging lithium producer says the proceeds of the issue will be used to boost development at its Mt Cattlin mine in Western Australia and processing plant in China.
An indicative non- binding term sheet has been signed which is subject to final documentation, and the approval of Galaxy’s board, senior lenders and other stakeholders.
Galaxy has also today confirmed that it is considering the possibility of dual listing on the Stock Exchange of Hong Kong.
Managing director Iggy Tan said listing in Hong Kong would position Galaxy as one of the largest lithium carbonate producers in the Asia Pacific, however no decision has been made at this stage.
Galaxy Resources posted a loss of $9.6 million in the first half of 2010.
