Posted in | Lithium | Mining Business

Galaxy Resources Gets Financial Boost from China

Galaxy Resources (ASX:GXY) is getting a financial shot in the arm from two of China's richest men. The money will come from Li Shu Fu, who controls Hong Kong listed carmaker Geely and 44-year-old Wu Yue Ming, the owner of fast-growing conglomerate Fengli.

Together the two will invest $91.5 million in the Perth based company. This money will then be utilized by Galaxy to fund its acquisition of fresh lithium resource assets all over the world. The company aims to be the fourth largest producer of lithium carbonate in the world.

The material is used in mobile phones, batteries, computers, ceramics and pharmaceuticals. The company had initially decided to invest an amount of $30 million but is looking to raise a further $100 million when it gets a dual listing in the Hong Kong Stock Exchange.

The Managing Director of the Perth based company, Iggy Tan said that they were looking at different opportunities around the world to increase their lithium footprint. They are looking at well developed resource projects and were not interested in early exploration. He also said that demand for lithium has picked up dramatically even though the actual prices have not moved in the last 18 months due to the financial crisis levels.

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