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Creation of a leading, diversified global lithium company with existing production and a pipeline of market leading development
projects
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Diversified, wholly owned portfolio of hard rock and brine based lithium assets across multiple jurisdictions
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Becoming a major supplier of high quality lithium products, servicing the high growth demand from multiple applications including
lithium ion batteries used in the consumer electronics, electric vehicles and mass energy storage sectors
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Pro-forma market capitalisation in excess of A$800m (as at 24 June 2016) with the potential to become an S&P/ASX 200 company, recently included into the MSCI Small Cap Index
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Simplified single ownership structure and operational management of Mt Cattlin and James Bay, which is immediately cash flow
accretive to the merged entity
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Merged Board and management team highly credentialed and experienced with strong connections in the key Asian and North American lithium markets, and a proven ability to deliver on strategic goals and growth going forward
-
The merged entity (Pro-forma Galaxy) will have enhanced financial capacity with a strong pro-forma balance sheet and significant
underlying future cash flow from Mt Cattlin to support continued project expansion and development
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General Mining shareholders will retain exposure to Mt Cattlin while gaining exposure to one of the world's leading brine assets in Sal De Vida
Timeline of General Mining Relationship
Galaxy and General Mining are a natural fit given existing JV assets and complementary operational expertise
Share price (A$)
0.80
May 2016
Galaxy and General Mining announce merger
April 2016
0.60 General Mining announces production commencing
at Mt Cattlin
October 2015 General Mining delivers independent review of Mt Cattlin supporting intention to restart production
0.40
August 2015
General Mining announces Mt Cattlin reserve and
resource update
June 2015
Revised terms of Mt Cattlin farm-in agreement agreed; Galaxy to retain 50% stake and earn A$25m
0.20
-
Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Galaxy Resources (GXY: ASX) General Mining (GMM: ASX)
Source: IRESS, Company disclosure
Proposed Merger Details
Merger proposal is unanimously supported by both the Galaxy and General Mining Boards
Merger overview
-
Friendly, off-market offer made for General Mining (ASX: GMM) on 30 May 2016
-
General Mining shareholders will receive 1.65 new Galaxy shares for every 1 General Mining share held
-
Represented a 9.4% premium to the 10-day VWAP at the date of takeover announcement
-
Galaxy and General Mining Board unanimously support the merger
-
Currently there is no alternative proposal
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Martin Rowley and Anthony Tse will remain as Chairman and Managing Director, and Michael Fotios will be offered a Director's position
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The proposed merger is subject to a 90% minimum acceptance condition
-
Galaxy and General Mining shareholders will own 71% and 29% respectively of the enlarged Pro-forma Galaxy
-
Currently, Galaxy holds 6.72% of General Mining shares on issue, which
Market capitalisation of ASX-listed lithium producers and developers (A$m)1,2,3
978
825
827
591 561
235 234 201
includes 4.94% pre-bid acceptance agreements from GMM shareholders
- Other shareholders associated with Michael Fotios, Executive Chairman of General Mining, have made statements of intention to
Orocobre (ORE:ASX)
Pro-forma Galaxy Resources (GXY: ASX)
Galaxy Resources (GXY:ASX)
Pilbara Minerals (PLS:ASX)
Neometals (NMT:ASX)
General Mining (GMM:ASX)
Altura Mining (AJM:ASX)
accept the offer, representing a further 10.56% of General Mining
shares outstanding
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Canaccord Genuity is acting as financial advisor to General Mining