News: GXY Australia's Alita Resources repays loan to top shareholder Galaxy Resources

Dec 2 (Reuters) - Australian lithium miner Galaxy Resources (GXY) on Monday said cash-strapped smaller peer Alita Resources (A40) had fully repaid its senior secured loan facility, sending the company's shares sharply higher.

Galaxy bought $28.8 million worth of debt from the troubled miner earlier this year, making it Alita's largest equity holder.

Alita, which is undergoing a wider restructuring, previously had defaulted on its debt to a group of lenders due to a sharp fall in lithium spot prices.

Lithium miners are struggling as prices have plummeted this year due to global trade tensions and lower demand from Chinese customers after a change in the country's electric vehicle subsidies.

The weakening sentiment in the electric vehicle and lithium-ion battery market also pushed Galaxy to cut production at its Mt Cattlin mine in October.

Galaxy shares were trading up 2.4% at A$0.9475 at 0106 GMT, while the broader market (xjo) was 0.5% higher.

Alita said on Friday it had entered into a A$70 million ($47.5 million) loan facility agreement with China Hydrogen Energy Ltd to pay back Galaxy.

The total amount received by Galaxy on Monday was $32.5 million, including interest and costs, the company said in a statement.