News: Galaxy expands lithium footprint

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Galaxy Resources Ltd (ASX:GXY) says it has inked a deal to acquire up to 70 per cent of the James Bay Lithium project in Canada from Lithium One.

The emerging lithium producer will initially purchase a 20 per cent stake for around $3 million, but retain the ability to earn an additional 40 per cent within two years through funding a feasibility study on the project.

Galaxy says the project will provide a stable supply of lithium to the emerging lithium battery sector in the north-east United States and eastern Canada.

Managing Director Iggy Tan says Galaxy intends to grow its lithium resource footprint and the latest deal is attractive because of its location, geology and the low cost of entry.

In September Galaxy said it had raised $91.5 million to ramp-up its projects in Western Australia and China in addition to funding potential acquisitions.

Galaxy Resources booked a $9.61 million net loss in the first half of 2010.