Embattled lithium miner Galaxy Resources has raised the $12 million needed to close its capital funding push after shareholders pitched in with a $5 million lifeline.
The company has been trying to raise $47 million through a share issue since May, but has been forced to push back the close of the raising several times.
Galaxy announced yesterday that a consortium of shareholders had afforded it a $5 million working capital loan.
The company said the loan and commitments from other major shareholders including Deutsche Bank meant it had reached the minimum subscription level and capital raising could now proceed.
Earlier this year the miner announced plans to cut salaries as it tried to raise nearly $50 million in order to pay debt and boost working capital.
In a letter to shareholders, the company announced its board and senior management will take significant pay cuts in an attempt to cut costs by $10 million over two years.
Business analyst Tim Treadgold said the low demand for lithium was a major problem for the company.
The WA miner owns the Mount Cattlin mine near Raventhorpe which was put into care and maintenance earlier this year.
"Demand for lithium is not what a lot of companies expected," Treadgold said.
"The price is not high and there's no shortage in the world, therefore, even if they raise this $47 million, there's no guarantee the business will be a long term success."