Member Info for sniffer78

Glacial

I would not rule out anything at the moment ATB

From Kacy Hotcopper Selling Mt Catlin for 30m would be the most stupid decision ever and would play right into China's hands. When Mt Catlin was operating it was selling spodumene for AUD$280/ton and making a profit. We are now buying spodumene from Talison for AUD$360/ton. Mt Catlin can supply Juangsu at full production for 10-15 years. If GXY sells Mt Catlin the next day Talison will put the price of its spodumene up to $500/ton which would effectively transfer all the Jiangsu plant's profits from the GXY shareholders to Talison (China).

CRHL/Creat Group could buy mount Cattlin as we are a Australian registered company, could this be are new investment time will tell ATB

I just spoke to the Comp.Sec and here is what he said. The Korean Consortium (KC) are expected to proceed with the SdV project, opting out by July 12 is very unlikely. If they do opt out, 26% of KC's share of SdV would revert back to GXY. GXY remains committed to the project and cant/wont be opting out either. They have a project completion guarantee (don't need any CR for this) but taking on more bank debt under the current circumstances could be hard. It is possible part or all of GXY's share of SdV could be sold to the KC or a third party (NPV $380m). Or they could sell James Bay or Mt Catlin to improve the cash position. I asked if FIRB approval is needed to sell Mt Catlin and he said yes, this would make Mt Catlin more difficult to sell than the others. He said discussions are underway with the major shareholders to get them to invest more in the company via the rights issue and he seemed somewhat competent that most will do that and bring confidence to the proposed plan moving forward. He also said the bond holders are not very happy with how things have developed but he believes they prefer to negotiate/wait rather than demand payment on the due date.

Should push up further as we approach end of June early July with news on GXY major shareholder news ATB

The Company has received a number of positive approaches from some of its major shareholders regarding amending the structure of the capital raising and is concluding those discussions in the best interests of all shareholders. The company said last week it had received approaches from parties in the past to acquire a minority stake in its non-producing assets for a value in excess of $30 million but it needed more time to pursue the approaches. Could Creat Group/ CRHL buy Mount Cattlin or take a stake in that hmmmmm interesting times ahead.

I agree mate the Creat Group/CRHL have been in since the beginning, I will fall off my chair if they don't increase or try to take it over mate. It's going to be a very exciting 3 weeks ;-)

IGGY Tan has resigned as managing director of struggling lithium producer Galaxy Resources, as the company has delayed the dispatch of a prospectus for its heavily discounted $A47 million after “positive approaches” from shareholders. The company announced Tan’s resignation late yesterday after four-and-a-half years at the helm. “Under Mr Tan’s leadership Galaxy’s management has built a global lithium company with assets across four continents and is well-positioned to become the pre-eminent producer of high-grade lithium carbonate,” the company said. However, it’s been a tough year for Galaxy with the planned suspension of its Mt Cattlin lithium mine in Western Australia and a lengthy halt at its Jiangsu plant in China after a fatal accident. As a result of the Jiangsu accident, East China Mineral Exploration & Development scrapped its plans to invest $66 million in Galaxy, prompting the company’s raising. The proposed issue price of 8c represents a hefty 65% discount to Galaxy’s closing price on April 24 but the company previously said it was necessary due to the current state of the market. But today the company said it had delayed the dispatch of the prospectus. “The company has received a number of positive approaches from some of its major shareholders regarding amending the structure of the capital raising and is concluding those discussions in the best interests of all shareholders,” Galaxy said. As a result, the shareholder briefing sessions planned to take place over the next week in Brisbane, Sydney, Melbourne, Perth, Vancouver and Toronto have been cancelled. Last week Galaxy secured a $5 million bridging facility from shareholder Deutsche Bank. The company said last week it had received approaches from parties in the past to acquire a minority stake in its non-producing assets for a value in excess of $30 million but it needed more time to pursue the approaches. Galaxy shares remain suspended but last traded at 23c

Yes indeed come on CRHL time to step up and turn Galaxy around ATB

I see that as great news and very exciting, also Hotcopper followers will be happy now.

This week or early next week for production update, last one was 10/05/2013 60% plant design. Next plant figures should be round 75/80% ATB

Next production update due anyday mate

I could see it going a bit mental here in couple weeks, and if CRHL have filled there boots with more Galaxy shares then that will be very exciting. ATB

I think we will all be shocked if we don't take part, but I would like to think they defo will mate, as you say we are still major share holders ;-) http://screencast.com/t/GCqmLeZ04L

Well my thinking is CRHL take part fill there boots, Galaxy is restructured with around $23 million cash. Lithium plant is making good profit 2/3 months later take over offer comes in 0.30/0.40 share CRHL clean up.

I really think CRHL will be taking this option up good news for us, we have paid back 5 million to Creat Group I think they will use that ;-) http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01411978

Here yeah go mate 10th Feb 2010 http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CRHL&ArticleCode=2x9b830h&ArticleHeadline=Proposed_Acquisition_of_an_interest_in_Galaxy

convertible note. Convertible notes are often used by angel investors who wish to fund businesses without establishing an explicit valuation of the company in which they are investing. When an investor purchases equity in a startup, the purchase price of the equity implies a company valuation. For example, if an investor purchases a 10 per cent ownership stake in a company, and pay $1m for that stake, this implies that the company is worth $10m. Some early stage investors may wish to avoid placing a value on the company in this way, because this in turn will affect the terms under which later-stage investors will invest in the company. Convertible notes are structured as loans at the time the investment is made. The outstanding balance of the loan is automatically converted to equity when a later equity investor appears, under terms that are governed by the terms set by the later-stage equity investor. An equity investor is someone who purchases equity in a company. Example Suppose an angel investor invests $100,000 using a convertible note. Later, an equity investor invests $1m and receives 10% of the company's shares. In the simplest possible case, the initial angel investor's convertible note would convert to 1/10th of the equity investor's claim. Depending on the exact structure of the convertible note, however, the angel investor may also receive extra shares to compensate them for the additional risk associated with being an earlier investor.

Whats the placing price for Galaxy cap raising $0.8 whats the The Convertible Loan Note may be converted at any time at the option of the noteholder into Ordinary Shares at a conversion price of £0.06 per Ordinary Share. Funding of the Further Galaxy Subscription To fund the Further Galaxy Subscription, the Company intends to raise through the Second Round Placing up to £15,118,600 (approximately A$27,280,000) net of commissions and other transaction expenses. The maximum gross proceeds of the Second Round Placing will be approximately £17,000,000. Further details of the Second Round Placing are set out below. The Second Round Placing has not been underwritten and therefore there is no certainty that all or any of the funds necessary for the Further Galaxy Subscription will be raised. The Company has agreed with Creat Group that, in the event that the gross funds raised in the Second Round Placing are less than £17,000,000 (equivalent to approximately A$30,674,800), Creat Group shall procure that the Convertible Loan Subscriber shall advance to the Company an amount equal to such shortfall under the terms of an agreed form Convertible Loan Note. The Convertible Loan Note will have a coupon of 10 per cent. per annum and a maturity date twelve months after Shareholders approve the Further Galaxy Subscription. The Company must repay the Convertible Loan Note (together with accrued interest) in full on the maturity date. The Convertible Loan Note may be converted at any time at the option of the noteholder into Ordinary Shares at a conversion price of £0.06 per Ordinary Share. Under the requirements of the Act, and given Creat Group's current shareholding in the Company, the approval of the Company's shareholders would be needed for the convertible Loan Subscriber to convert the Convertible Loan Note. The terms of the Convertible Loan entitle the Convertible Loan Subscriber to assign it to a third party in whole or part if the assignee enters into an orderly marketing arrangement in a form similar to that described in paragraph 10.3.2 of part 5 of the Admission Document and (a) the Company has provided its prior written consent; or (b), inter alia, (i) the assignee is not a related party to the Company; (ii) upon conversion, that the assignee's relevant interests in the Company's Ordinary Shares will not exceed 19.99 per cent.; and (iii) notification of the assignment or subsequent conversion is not required by relevant legislation. Upon assignment, the assignee is obliged to immediately serve a notice on the Company requiring it to convert the Convertible Loan Note into Ordinary