The Iggy Tan-headed group is understood to be working on placing 51 million shares at $1.28 a share with Australian and international institutional investors.
The offshore component of the offer, which is intended to be split 50:50, is already believed to have received strong support.
The move, flagged last month, comes on the back of Galaxy's funding deal with China's Creat Group, which included a 19.9 per cent stake in Galaxy for $24 million, or 88¢ a share, and a $130 million debt facility.
Galaxy shares, which were yesterday placed in a trading halt, last traded at $1.75.
Bids are sought by tomorrow and the raising will need to be approved by shareholders at a meeting scheduled for later this month.
Sydney-based Helmsec Global Capital and State One Stockbroking are believed to be managing the placement.
Galaxy is targeting production at Mt Cattlin in the third quarter of 2010 and hopes to be the fourth-biggest lithium carbonate producer in the world by 2011.
Although a number of lithium explorers have emerged on the back of analysts' expectations that demand for lithium carbonate could treble over the next 10 years, Galaxy is one of the few that is close to being in production. Lithium is used in batteries and glass.
The group has already received letters of intent for up to 22,000 tonnes of lithium carbonate a year, exceeding its production target of 17,000tpa.
Galaxy has put a $130 million price tag on developing Mt Cattlin, including a mine and a processing plant to produce 137,000 tonnes a year of spodumene concentrate.
It will also establish a downstream lithium carbonate chemical facility in China's Jiangsu Province to produce lithium carbonate, which can then be sold into Asian and European markets.
GXY Price at posting:
$1.75 Sentiment: LT Buy Disclosure: Held
