Strategic Alliance: Galaxy Resources Ltd (ASX: GXY) has been soaring high with the latest 7.3% rise in stock price on October 16, 2017 following the 28% surge in last one month (as at October 13, 2017). The group along with GXY Group Entities has lately become an initial substantial holder for Lepidico Ltd (ASX: LPD) with 12% voting power. GXY has in turn agreed for subscribing $2.9 million for this private placement. Galaxy has particularly subscribed for over 291.7 million shares in Lepidico at a price of $0.01 per share.

GXY and LPD have come up with this arrangement given their collective vision for the global opportunity provided by the commercialisation of Lepidico’s L-Max technology (that produces lithium carbonate from nonconventional sources including mica.) and in view that LPD seems to be well placed for expediting the commercialisation of its L-Max technology, both financially as well as with support from GXY’s technical capabilities, industry contacts and market expertise. GXY will thus be able to potentially assess mica feedstock in future through this move, for extracting lithium from the low-grade waste ore. In this regard, Lepidico has also launched a one-for-six renounceable entitlement offer priced at 1 cent a share to raise a further A$6 million, and appears to be fully funded to complete the Phase 1 L-Max plant feasibility study.

GXY will be announcing its September quarter results on October 17, 2017. The group’s Mt Cattlin has expanded capacity and is positioning the group as the major global supplier of high quality lithium while James Bay has been identified as a high-quality development project. GXY is finding support from lithium macro trends and the latest strategic moves.

With GXY’s investment in lithium processing, LPD stock witnessed a whopping 60% surge in price on October 16, 2017. 

GXY’s Asset Portfolio (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.