Galaxy Capital Corp. Arranges 12 Million Unit
Private Placement
Galaxy Capital Corp. (TSX VENTURE:GXY.V - News) (the "Company" or "Galaxy") is pleased to announce
that it has arranged for a non-brokered private placement of 12 million units
at a price of 18 cents per unit. Each unit will consist of one common share and
one transferable eighteen month share purchase half-warrant. Each half-warrant
will be exercisable at a price of 25 cents to purchase one additional common
share of Galaxy. Galaxy intends to use the funds with this private placement
for exploration and development on its graphite exploration projects in Quebec
and for general working capital.
About Galaxy
Galaxy Capital Corp is a publicly traded Canadian exploration company
which is focused on exploring and developing graphite properties, especially in
the Grenville geological province in eastern Canada. In addition, the company
is exploring a highly prospective gold property in northeastern Saskatchewan,
Brownell Lake.
Sun Graphite Property, Quebec
The Sun Graphite property consists of 4,200 hectares, located
approximately 145 km by road, north of Baie-Comeau,
QC. The property is owned 100% by Galaxy Capital Corp. The claim block hosts
multiple targets for large flake graphite, initially identified by Outokumpu Mines Inc. in 1998, looking for base metal
mineralization.
The property is located within the Central Metasedimentary
Belt of the Grenville Province of the Canadian Shield. This geological province
is characterized by a high level of metamorphism, critical in the development
of coarse flake graphite. This metamorphism is believed to have occurred
approximately one billion years ago.
Within the property boundary, in excess of 25 km of conductive horizons
were identified from the airborne survey. All of this may be considered
prospective for graphite mineralization.
Buckingham Graphite Property, Quebec
The Buckingham Graphite property comprises two former producing mines,
located just east of Buckingham, QC. They are located in the highly prospective
Central Metasedimentary Belt of the Grenville
geological province, host to many active graphite projects. The host rocks for
both deposits are graphitic crystalline marbles, similar to the host
stratigraphy at Timcal's Lac des Iles graphite mine,
currently Canada's only producing graphite mine. The two properties cover a
total of 1,324 Ha on 22 mining.
Graphite Market
Global consumption of natural graphite has increased from approx.
600,000 in 2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by
approximately 5% per year since 2000 due to the ongoing modernization of China,
India and other emerging economies, resulting in strong demand from traditional
end uses such as the steel and automotive industries. Graphite also has many
important new applications such as lithium ion batteries, fuel cells and
nuclear and solar power that have the potential to create significant
incremental demand growth. There is roughly 20 times more graphite required by
weight to produce a lithium-ion battery than there is lithium. Demand for
graphite is expected to rise as electric vehicles and lithium battery
technology are adopted as well as increasing uses in new technology
applications.
Natural graphite comes in several forms: flake, amorphous and lump. Of
the 1.2 million tonnes of graphite produced annually, approximately 40% is of
the most desirable flake type. China, which produces about 73% of the world's
graphite, is seeing production and export growth leveling and export taxes and
a licensing system have been instituted. A recent European Commission study
regarding the criticality of 41 different materials to the European economy
included graphite among the 14 materials high in both economic importance and
supply risk (Critical Raw Materials for the EU, July 2010). Graphite prices
have been increasing in recent months and over the last couple of years prices for large flake, high purity graphite (+80 mesh,
94-97%C) have more than doubled.
Chris M. Healey, geologist, a Qualified Person as defined by National
Instrument 43-101, has reviewed and approved the technical content of this
release.
ON BEHALF OF THE BOARD
Chris M. Healey, President and CEO