Galaxy Resources (ASX:GXY) announced a private placement of 162,400,000 shares at AUD 0.50 per share for gross proceeds of AUD 81,200,000 from returning investor M&G Investment Management Limited and new investor East China Mineral Exploration and Development Bureau, Investment Arm on November 5, 2012. The investment will take place in two tranches. M&G Investment Management Limited will subscribe for 30,000,000 shares in first tranche increasing its stake in company to 19.30% which is expected to close by November 9, 2012. East China Mineral Exploration and Development Bureau, Investment Arm will subscribe for 132,400,000 shares in the second tranche making its total stake in company at 19.80% and reducing M&G Investment Management Limited stake to 16.80%. Second tranche is subject to due diligence by East China Mineral Exploration and Development Bureau, approval from the Jiangsu Provincial Development and Reform Commission and Jiangsu Provincial Department of Commerce, registration with China National Development and Reform Commission and PRC Ministry of Commerce, approval from the China State Administration of Foreign Exchange Jiangsu Branch, Australia's Foreign Investment Review Board and company's ordinary shareholders. It is expected to close by early January 2013. Notice of meeting for EGM is expected to take place on November 13, 2012 and shareholder approval for second tranche at EGM on December 12, 2012. The second tranche is expected to close in January 2013.

On November 7, 2012, the company issued 30,000,000 shares to M&G Investment Management Limited in first tranche.

On November 9, 2012, the company announced that the notice of meeting for extra ordinary general meeting will be dispatched on December 14, 2012. The shareholder approval for tranche 2 will take place on January 16, 2013 and the issue of tranche 2 shares will take place in late January 2013.

On December 12, 2012, the company announced that it has extended the date within which East China Mineral Exploration & Development Bureau has to complete due diligence on the company.

On January 18, 2013, Galaxy Resources closed the transaction. The company announced that East China Mineral Exploration and Development Bureau, Investment Arm has withdrawn from the transaction. The investor will re-consider the transaction when the company's Jiangsu Lithium Carbonate Plant in China returns to stable operation. The company received AUD 15,000,000 in the transaction from M&G Investment Management Limited.