Unfavourable financial markets have prompted lithium focused miner Galaxy Resources to postpone its proposed initial public offering in Hong Kong until further notice.
The ASX-listed Galaxy had planned a dual listing on the Hong Kong Stock Exchange at the end of the current quarter.
Galaxy is an emerging mining and chemical company focusing on lithium and tantalum production. It is at an advanced stage of developing its Mt Cattlin Lithium Project in Ravensthorpe, Western Australia. The project encompasses a mine and minerals plant which will annually produce 137,000 tonnes of 6% Li2O spodumene concentrate.
Galaxy intends to add value to the Mt Cattlin Project by establishing its own downstream lithium processing facilities in China. The company is finalising plans to establish a lithium carbonate chemical facility in Jiangsu Province, annually producing 17,000 tonnes of lithium carbonate.
Its managing director Iggy Tan says that whilst the company is very disappointed to have to delay its Hong Kong IPO, it is a prudent decision in light of serious international events and related market volatility.
“Given the company's strong financial position, we saw no necessity to launch the IPO in a market environment that would not serve the interests of either existing shareholders or deal participants. We are still strongly focused on listing in Hong Kong and will proceed when we believe the time is right.”
Galaxy has loaded its first shipment of spodumene at the Bunbury Port in Western Australia. About 6500 tonnes of spodumene was loaded on the MV Ocean Flower bound for the Zhangjiagang Port in China.
Iggy Tan says, “This is a very exciting day for the company and for all our operations. It is the first load of spodumene to be shipped from our Mt Cattlin mine in Ravensthorpe and heralds the preparation of commissioning at our Jiangsu Lithium Carbonate plant in China. We are still on track to begin commissioning and start-up of the Jiangsu plant at the end of the second quarter.
“If we have a surplus of spodumene around the commissioning phase, we may consider selling subsequent shipments to external customers, but our priority is the Jiangsu plant.”
The company shipped its first product from Bunbury while it finalises shipping arrangements with the Esperance Port.