Galaxy Resources agree $216m General Mining takeover

Galaxy Resources agree $216m General Mining takeover

Galaxy Resources (ASX:GXY) has announced a AUS$216 million acquisition of joint venture partner General Mining (ASX:GMM).

The Australia lithium developer offered General Mining shareholders 1.65 new Galaxy shares for every share already owned, a statement released by Galaxy said both boards fully support the deal.

The merged entity will comprise a portfolio of lithium projects across Australia, Argentina and Canada and is positioned to become a ‘major supplier of high quality lithium, servicing the high-growth demand from energy storage applications’.

“[the merger] gives the shareholders of both Galaxy and General Mining the opportunity to participate in the upside of a merged lithium company of global significance,” said Galaxy chairman, Martin Rowley.

“The arrangement… has enabled the re-commissioning of the Mt Cattlin mine, drawing on General Mining’s financial and technical resources, with Mt Cattlin now poised to deliver first production of spodumene to contracted buyers in the third quarter of 2016.”