Galaxy Resources (ASX:GXY) in $161 million capital raising

Company News

by Rachael Jones

Galaxy Resources (ASX:GXY) is undertaking a $161 million capital raising to fund its Sal de Vida Stage 1 and pre-development activities to progress James Bay to a construction ready status.

As a result of the Offer, Galaxy’s balance sheet will be increased from US$102 million as at 1 November 2020, to US$219 million (before Offer costs).

Galaxy’s plan is to de-risk the Sal de Vida development program by implementing a staged approach with an initial Stage 1 to be undertaken before a modular expansion into Stage 2.

Front End Engineering & Design ("FEED") for Stage 1 is expected to be completed by Q1 2021 and plant construction expected to start in late 2021.

Shares in Galaxy Resources (ASX:GXY) last traded at $2.00.