Australian lithium company Galaxy Resources has announced that East China Mineral Exploration & Development Bureau (ECE) has withdrawn its investment proposal citing concerns over its Chinese plant Jiangsu Lithium Carbonate.
The company had previously announced the investment proposal of ECE that was to add $66.2 m to its total capital raising $81m.
"ECE has indicated to Galaxy it is willing to re-consider the investment when Galaxy’s Jiangsu Lithium Carbonate Plant in China returns to stable operation," said the company in a statement.
Galaxy, however, stated that it is seeking other potential investors to replace the Chinese.
The company has also announced that the first tranche of $20m financing has been agreed with Deutsche Bank and includes equity placement and call option transactions.
Earlier in November 2012, Galaxy’s lithium processing plant witnessed a blast claiming lives of two workers following which the site was closed and expected to be opened in February 2013.