gxy speculation, page-6

From The West today...

Galaxy Resources is planning to raise about $50 million to complete the ramp-up of its Mt Cattlin lithium project near Ravensthorpe.

The cash is needed as a buffer under the terms of Galaxy?s $US105 million project finance facility. The agreement with China Development Bank and Austria?s Raiffeisen Zentralbank Osterreich dictates that the company must have at least $US50 million in a cash-reserve account to cover future interest and principal repayments.

Until last month, when the project loan facility agreement was executed, work at Mt Cattlin had been funded by a combination of equity injections and a $US14 million bridging finance facility from Galaxy?s 19.9 per cent Chinese backer, Creat Group.

Shares in the Iggy Tan-headed group have been in a trading halt since Wednesday and it is understood Galaxy hopes to make an announcement by Monday.

Mr Tan, who is travelling in Hong Kong, could not be reached for comment. Galaxy shares, which are up 39 per cent since the start of the month, last traded at $1.44 ? a five-month high.

Galaxy expects to make its first shipment of spodumene concentrate from Mt Cattlin next month. The concentrate will be processed into the more lucrative lithium carbonate at Galaxy?s Jiangsu plant in China.