Ann: Galaxy Ships First Spodumene from Mt Cattlin, page-19

re: Ann: Galaxy Ships First Spodumene from Mt... Hi wotzon,
Thank you for your post re the vertical integration of
GXY's China based Li battery factory with the Mt Catlin
li mine.
This secondary stage of the company will, no doubt, add value to the Mt Catlin litium but it will likely cost the Australian shareholder a significant dilution of current GXY's shares over the next 4 months to do so.

Advisor71 post # 6512009 cites an AFR article dated 25-03-11 which says:-
"The company (GXY) had planned to raise $260 mil through the (HK) IPO to give it added capacity to make acqisitions,
fund construction of a lithium battery plant in China and pay off a $105 mil loan facility."

The article continues:-
"Mr Whitfield said the company might list (in HK) in about 4 months."

At today's sp of $1.27 this would mean selling 205 million shares without discount, a dilution of nearly 1 to 1, in Hong Kong of which the Aussie investor would likely not have direct access.

The first shipment of spudemene to China is encouraging and many will look forward to the publication of the price at which this shipment was transferred to the Chinese plant. The March qtr report should qualify whether this was an international sale including price or simply a stock transfer without price.
Cheers
Moorookamick