AIM-quoted Creat Resources Holdings Limited (CRHL) has welcomed the completion of pre-IPO fundraising by ASX-listed Galaxy Resources, in which it is a major shareholder.
Although Galaxy is already listed in Sydney, Australia, it has announced an impending dual listing on the Hong Kong Stock Exchange. The new share placing raised AUD91.5 million (approx GBP57 million) from a single new shareholder – Fengli Group (Hong Kong) Ltd, at AUD1.39 per share.
CRHL last year completed the acquisition of a 19.9% shareholding in Galaxy at an agreed price of AUD0.88 per Galaxy share. That shareholding has now been diluted to 17.78%.
The new fundraising follows a series of recent update announcements from Galaxy, which has positioned itself to become a world leader in the market for lithium, a key element in the manufacture of green batteries. Since the start of the year, Galaxy has also successfully reviewed a promising rare earth project, at Ponton in Western Australia, and completed a farm-in agreement at James Bay in Quebec, Canada, in line with its strategy of increasing its lithium resources.
CRHL’s Chief Operating Officer Rex Chow says: “We are confident that the successful completion of Galaxy’s new fundraising, its impending listing on the Hong Kong Stock Exchange and the continued enhancement of its lithium resource-base all further underpin our strategic investment and will help add new value for CRHL shareholders. At the same time, we continue to explore similar opportunities for international expansion, and to appraise the development prospects on our existing exploration tenements in Western Tasmania.”
Galaxy said the new fundraising will further help it to become a vertically-integrated lithium company, from raw-product lithium production through to chemical processing and lithium-ion battery manufacturing. It is currently near to completing construction of a lithium carbonate processing facility in China’s Jiangsu Province, close to major markets. The Jiangsu plant will use feedstock already being produced from Galaxy’s Mt Cattlin mine in Western Australia.
The new investor in Galaxy, Fengli, is a Jiangsu-based logistics conglomerate.
CRHL Executive Chairman Yuewen Zheng and Non Executive Director Xiaojian Ren are both Non Executive Directors on the Galaxy Board.
