galaxy postpones hong kong ipo on poor financi, page-32

moorookamick , you wrote:

"The Mitsubishi take-off agreement seems to be a bit of a
"Claytons" without any obligation on Mitsubishi to perform.
What's your read?"

Once again Moorookamick it is all in the prospectus ,once again please read this document .

The coy has entered into legally binding offtake agreements.

"Offtake framework agreements for lithium carbonate"

http://www.galaxyresources.com.au/documents/DocGXY-159GXYIssuesWPIPforHKListing110228_000.pdf

"To support our production, we have entered into offtake framework agreements covering all of our expected production of lithium carbonate with Mitsubishi Corporation and 13 major cathode producers in the
PRC. These offtake framework agreements are legally binding between the parties to each of the agreements
where the obligations to buy and sell are subject to the parties further agreeing the price of the product to be sold each quarter. None of these agreements include any take or pay obligations. We believe that this quarterly price setting mechanism is appropriate in an industry where there is currently no recognized benchmark price and
expect that this will also enable us to capture any increases in pricing for a lithium compound which we
anticipate will enjoy increasing demand as the lithium-ion battery market grows."