Galaxy Resources Reports 'Transformation' of Balance Sheet

Galaxy Resources Ltd. (ASX:GXY) announced that bondholder trustee Citicorp International Ltd. has confirmed that the company’s historical convertible bondholders have been paid out in full. The news follows the drawdown of funds on Galaxy’s new three-year debt facility with OCP Asia Ltd. (OCP).
Highlights include:

• All outstanding historical debt now fully repaid from proceeds of new 3 year facility
• Balance sheet transformed with pro-forma net debt reduced to A$19 million
• Priority now near term cash flow from restart of production at Mt Cattlin by the end of Q1 2016
• Galaxy well placed in lithium sector with 3 world class projects

The release also states:

The arranging and drawdown of the OCP facility and the repayment of the historical convertible bonds has resulted in a transformation of the Galaxy balance sheet and completes the initial strategy outlined when the new board and management team was appointed in the second half of 2013. At the time of that appointment, the Company was in a precarious financial situation with over $200 million equivalent of debt, very little cash on hand and negative cash flow from operations.

Anthony Tse, managing director of Galaxy, commented:

With the financial restructuring objectives that we set out to achieve now successfully complete, our priority now will be work with General Mining’s technical team towards the restart of production at Mt Cattlin, a project that the previous management put on care and maintenance over two years ago. Through our new collaboration with General Mining, we will be bringing Mt Cattlin back into production in a very robust market for its spodumene product.

Click here to read the full Galaxy Resources Ltd. (ASX:GXY) press release.