Galaxy Resources ready to tip into Alliance Minerals

Cashed up listed lithium player Galaxy Resources is set to invest fresh funds into fellow listed miner Alliance Minerals Assets Ltd.

It is understood Galaxy is preparing to bankroll Alliance Minerals via a placement of new shares in a deal being finalised on Tuesday.

Alliance shares are in a trading halt ahead of a capital raising.

Galaxy, which has about $400 million cash on its balance sheet, is expected to emerge with a toehold 10 per cent to 15 per cent Alliance stake following the placement.

Galaxy has long been seen as a potential suitor of Alliance, and its predecessor company Tawana Resources. It is understood to already have a small investment in Alliance, however it has never disclosed a stake and is not above the 5 per cent substantial mark.

Investor sources said Canaccord Genuity was in line to handle the raising.