Squire Patton Boggs is acting for General Mining Corporation Limited (ASX:GMM) on its merger announced today with Galaxy Resources Limited (ASX:GXY), creating a premier global lithium producer with leading market assets.

The merger sees General Mining, an ASX listed lithium production company whose primary assets are the right to earn, from Galaxy, 50% of the Mt Cattlin spodumene project in Western Australia, and an option to earn 50% of the James Bay spodumene exploration project (Quebec, Canada), join with  Galaxy Resources, a lithium-focused resources company, with assets spanning Australia, Canada and Argentina.

The combined company will be a leading global lithium producer with international assets and strong networks in the key Asian lithium markets.

The transaction is being structured as an off-market takeover bid by Galaxy for all of the shares in General Mining pursuant to which General Mining shareholders will receive 1.65 new Galaxy shares for every 1 General Mining share held.  The transaction values General Mining at approximately AU$216 million with the merged entity expecting to have a combined market capitalisation in excess of AU$700 million.

The Squire Patton Boggs team advising General Mining is being led by Corporate partner Simon Rear and includes senior associate Chris Rosario and associate Chanelle Tong.

Simon Rear explained, “There is a compelling strategic rationale for the transaction, as it simplifies the ownership structure and operational management of both General Mining and Galaxy.  It brings their jointly owned assets under a single ownership which is supported by a highly credentialed management and board.

“We have been pleased to act for General Mining in such a significant transaction in the company’s journey.”

Cannacord Genuity also provided financial advice to General Mining in connection with the merger.