Galaxy Resources Ltd. acquired Alita Resources Ltd.'s senior secured loan facility worth US$28.8 million that was provided by lenders led by Tribeca Investment Partners Pty. Ltd., making Galaxy the largest equity holder of the troubled lithium miner.
The US$31.1 million acquisition will provide Galaxy with the flexibility of being a secured lender to Alita and allows it to work directly with all stakeholders to examine possible reorganization options, according to an Aug. 27 news release.
Galaxy will use existing corporate debt facilities to fund the purchase.
Alita entered into a standstill agreement with its lenders Aug. 16 after the company received a notice of default over the facility after applying for an ASX trading suspension Aug. 14.
Galaxy subscribed for A$22.5 million of Alita shares in May.
