Creat Resources Holdings Ltd Major Asset Sale (3551R)

TIDMCRHL

RNS Number : 3551R

Creat Resources Holdings Ltd

16 November 2012

16 November 2012

Creat Resources Holdings Limited

("CRHL" or "the Company")

Major Asset Sale

Creat Resources Holdings Limited announces that between 13 November 2012 and 15 November 2012, the Company disposed of 256,704 shares of Galaxy Resources Limited ("Galaxy") in aggregate at an average price of AUD0.498 per share (the "Disposal").

The Company has to date invested in the shares of Galaxy as a long term strategic investment. Prior to the Disposal, the Company held 38,091,616 shares in Galaxy representing 7.1 per cent. of Galaxy's issued share capital. As announced on 5 November 2012, as at 30 June 2012, the last financial year end, the holding of 38,091,616 shares had a reported fair value of AUD22,283,595, or AUD0.585 per share.

Following the Disposal, the Company will hold 37,834,912 shares in Galaxy representing 7.052 per cent. of Galaxy's issued share capital.

The average selling price of AUD0.498 per share is below the last reported fair value of Galaxy of AUD0.585 per share, due to a decrease in Galaxy's share price since the year end.

Reasons for the Disposal

On 17 October 2012, the Company announced that it will dispose of all the interests it holds in the mining tenements around Zeehan, Tasmania, Australia ("Mining Assets Sale") for a total consideration of AUD4 million. The Mining Assets Sale is expected to be completed in the first quarter of 2013. Prior to such completion, the Company requires working capital for its normal operations and to honor its commitments under these tenements. Therefore, the reason for the Disposal is to raise short term funding to facilitate the Company to continue its operations through the first quarter of 2013.

The Board points out that:

   1.   The Company's investment strategy regarding Galaxy remains unchanged; 
   2.   The Disposal only represents a small portion of the Company's holding in Galaxy; 

3. The proceeds from the Disposal are expected to be received via normal share trading settlement channels and will be used as working capital;

4. Further disposal of Galaxy shares is expected to continue in the near future in order to meet with projected working capital requirements and aggregate disposal is expected to be approximately 1,000,000 shares of Galaxy.

 
For further information please visit www.creatresources.com or contact:Creat Resources Holdings Limited       Tel: [phone] 
                                                   6228 
 Morris R. Hansen, Company 
  Secretary 
 
 Daniel Stewart & Company          Tel: [phone] 
  Paul Shackleton 
 Emma Earl 
 
 
 About Creat Resources Holdings Limited 
 CRHL is an early stage mining exploration company holding 4 Exploration Licences and 3 Retention 
 Licences covering 109 square kilometres around the mineral rich Zeehan area in western Tasmania. 
 CRHL also has a strategy of acquiring assets in interesting resources companies that complement 
 or supplement the Company's exploration activities. CRHL is a major shareholder of Galaxy 
 Resources Limited ("Galaxy") with an interest of 7.52%. Galaxy is an Australian-based integrated 
 lithium mining, chemicals and battery company listed on the Australian Securities Exchange 
 (Code: GXY) and is an S&P/ASX 300 Index Company. Galaxy plans to be one of the world's largest 
 lithium carbonate producers and is positioning itself to be involved in every step of the 
 lithium supply chain. 
 About Galaxy Resources Limited 
 Galaxy Resources Limited ("Galaxy") is a Western Australian S&P / ASX 300 Index company which 
 plans to become one of the world's leading producers of lithium compounds - the essential 
 component for powering the world's fast expanding fleet of hybrid and electric cars. Galaxy's 
 Mt Cattlin mine aims to be the world's second largest producer of lithium mineral concentrate 
 globally, and through the development of its 17,000 tpa lithium carbonate plant in Jiangsu 
 province, Galaxy expects to be one of the largest and lowest cost lithium compound producers 
 in China. Lithium compounds such as lithium carbonate are forecast to be in short supply against 
 high future demand due to advances in long life batteries and sophisticated electronics including 
 mobile phones and computers. Galaxy has positioned itself to meet this lithium future by not 
 only mining the lithium, but also by downstream processing to supply lithium carbonate to 
 the expanding Asian market. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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