Galaxy finally closes plant sale
Shares in Galaxy Resources jumped after the company announced it was on the verge of closing out the protracted sale of its troubled lithium processing plant in China.
Galaxy struck a deal in April last year to sell the plant to Sichuan Tianqi Lithium Industries for $US230 million, but it was later forced to scale back the asking price to $US173.2 million.
The deal was also delayed by shareholder and regulatory approvals in China.
However Galaxy announced today that all conditions associated with the sale had now been met.
"The parties will now move through the logistics of closing including the transfer of funds over the next week," Galaxy said in a statement.
"The company will advise the market once final settlement has been completed."
Galaxy's Jiangsu troubled lithium processing plant was the brainchild of former managing director Iggy Tan, who had a dream of turning Galaxy into an integrated lithium mining and processing company.
But the plant was plagued with problems, spectacularly highlighted when a pipe exploded in 2012, killing two employees and injuring several others.
Despite its efforts, the company has never been able to run the plant as a cashflow positive operation.
It struck a long awaited deal to sell the plant to Tianqi in April last year.
Galaxy shares were up 0.5 cents, or 20 per cent, to three cents at 8am after emerging from suspension.
