News: Galaxy Resources to raise $20M

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Perth based miner, Galaxy Resources Limited (ASX:GXY) is set to announce a $20 million capital raising following the fatal incident at its Jiangsu lithium carbonate plant in China and as its cornerstone investor extends its due diligence period.  



The capital raising will be financed by Deutsche Bank and includes an equity placement of 48 million shares priced at 41.67 cents each.



A cash injection of $66 million from a subsidiary of the Jiangsu provincial government has been pushed back with the deal now expected to be completed in the first three months of next year, pending due diligence.  

 

In the 2012 financial year Galaxy Resources recorded a net loss of $49.6 million.