Galaxy Resources

A$62m Convertible Bond

November 2010

On 8 November 2010, Galaxy announced it had raised a total of A$91.5 million, comprising:

  • A$30 million via a share placement of 21.6 million shares at A$1.39 per share
  • A$61.5 million via the issue of convertible bonds with a conversion price of A$1.56, coupon rate of 8% per annum and term of 5 years.

The proceeds were raised to fund the completion of construction and ramp-up of Galaxy’s Mt Cattlin Project and Jiangsu Plant, as well as for working capital and the potential acquisition of other lithium-related projects.

Fengli Group invested A$30 million in the convertible bond issue and A$30 million in the share placement. Fengli Group, a privately owned company based in the Jiangsu Province, China, is the largest used metal processor and distributor in China and one of the top 500 enterprises in China.

A private company of Mr Li Shu Fu, who is the founder, Chairman and controlling shareholder of Chinese automobile manufacturer Geely, invested A$25 million in the convertible bond issue.

Azure Capital was appointed as financial adviser to Galaxy in relation to the share placement and convertible bond issue.