TIDMGLR
RNS Number : 4564L
Galileo Resources PLC
05 September 2023
5 September 2023
Galileo Resources Plc
("Galileo" or the "Company")
Zambian Exploration Licence joint venture
Issue of Equity & TVR
The Board of Galileo Resources Plc ("Galileo" or the "Company")
is pleased to announce that the Company has entered into a joint
venture agreement with Cooperlemon Consultancy Limited in relation
to the exploration for copper at large scale exploration license
28001-HQ-LEL in Northwest Zambia (the "Licence").
Highlights
-- Licence 28001 - HQ - LEL runs along the Angolan-Zambian
border and is closely associated with the perceived Western
Foreland geological district boundary that potentially hosts Kamoa
- Kakula deposits in Northwest Zambia.
-- The licence is 52,000 hectares area covering ground in a
district where the Company believes there is scope for the
discovery of Kamoa-style mineralisation.
-- There has been limited exploration to date and initial
fieldwork will commence within 60 days on the Licence with a view
to defining potential drill targets as soon as possible.
Colin Bird, Executive Chairman said : "This acquisition is
consistent with our policy of acquiring opportunity projects where
potential outweighs entry in reliable jurisdictions. The Project is
well-positioned in the emerging NW part of Zambia which is showing
potential not dissimilar to its' Democratic Republic of the Congo
neighbour Kamoa and Ivanhoe exploration areas known as the Western
Foreland. We intend to aggressively pursue this project to test the
potential for near-surface mineralisation as well as the much
postulated Kamoa-style mineralisation. Once targets are generated
we will proceed to drilling as soon as we are able and hopefully
before the rainy season commences. We will keep shareholders posted
as progress occurs".
Joint Venture Agreement
Galileo yesterday entered into a joint venture agreement with
Cooperlemon Consultancy Limited ("Cooperlemon") in relation to the
exploration for copper at large scale exploration license
28001-HQ-LEL in Northwest Zambia (the "Licence"). Under the joint
venture agreement ("JV Agreement"), Galileo has agreed the
following key terms:
Earn-in and Phase 1 exploration budget : Galileo will earn a 65%
interest in the joint venture by;
i) An immediate cash payment of US$230,000 to Cooperlemon;
ii) funding exploration expenditure over an initial eighteen
month period ("Phase 1") on the Licence of not less than
US$750,000. Exploration is expected to commence in September /
October 2023, and will comprise both physical activity within the
Licence boundaries (including but not limited to mapping, soil
geochemistry, geophysics and drilling), and desktop studies,
laboratory analysis and interpretation of data and results. Galileo
anticipates funding this exploration expenditure from existing
resources; and
iii) for the issue of 2,500,000 Galileo Resources plc shares
(the "Consideration Shares") at a price of 1.175 pence per share
being the closing Galileo share price on 4 September 2023
(totalling GBP29,375). The Consideration Shares are subject to a
three month lock up arrangement and thereafter a further three
months orderly market arrangement. Under the orderly market
arrangement, the Consideration Shares can be sold via the Company's
broker at a price determined by the vendor (the "Nominated Sale
Price") which shall not be less than the lower of i) the 10 day
VWAP and ii) the closing bid price on the day before the fixing of
the Nominated Sale Price and the Company's broker will have 10
business days to sell the shares at the Nominated Sale Price.
If the Phase 1 exploration results are successful and prove the
continuity of mineralisation at grades suggesting the potential for
the future development of a Mineral Resource of not less than
500,000 tonnes of contained copper, consistent with economic
recovery at the depth of discovery with a minimum internal rate of
return of not less than 25% and a payback period not exceeding 42
months (including the recovery of capital expenditure), then there
will be a second two year exploration period ("Phase 2").
Phase 2 exploration budget: The Phase 2 exploration expenditure
of US$1.5 million will also be funded by Galileo who will be the
operator of the Licence for the duration of the Agreement.
Consequence of Trade Sale: If there is a trade or any other sale
of the Licence and / or the Joint Venture during Phase 1 of the
joint venture then Galileo will be deemed to have a 55% interest in
the Joint Venture. A sale requires the agreement of both Galileo
and Cooperlemon.
Mine Development : In the event the Licence advances to a point
where they are commercially viable and suitable for development
then the licence will be moved to a corporate entity to be owned
75% by Galileo and 25% by Cooperlemon, and it will be the
responsibility of the newly formed corporate entity to raise all
capital for mine development and future operations.
Further information on the Licence
Licence No: 28001-HQ-LEL, which comprises 52,083 hectares and
expires on 31 May 2025, is held by L and I Investments Limited ("L
and I"), a private Zambian company which with Cooperlemon is under
the common control of local Zambian parties. The Licence is located
in North-West Zambia along the Angolan-Zambian border. L and I has
agreed with Galileo to be bound by the terms and the conditions of
the JV Agreement with Cooperlemon (who is acting on their behalf)
as though they were a party to the JV Agreement.
Geology, location and prospectivity
The style of mineralisation and associated geology and structure
responsible for the Kamoa-Kakula deposit operated by Ivanhoe Mines
may extend into the North-West Zambia.
The Western Foreland succession determines the geology of the
region and the Licence lies within the area where the Western
Foreland lithology necessary for Kamoa-style mineralisation can
reasonably be expected to occur.
Application to trading on AIM: Application will be made to the
London Stock Exchange for a total of 2,500,000 new Galileo Shares
to be admitted to trading on AIM which rank pari passu to the
existing ordinary shares in the Company. It is expected that
Admission will become effective and that dealings in the new
Galileo Shares will commence at 8.00 a.m. on 12 September 2023.
Total Voting Rights : On Admission, the number of Ordinary
Shares in issue will be 1,163,188,453 (the "Enlarged Share
Capital") which may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, Galileo under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.
Further information is available from the Company's website
which details the company's project portfolio as well as a copy of
this announcement: www.Galileoresources.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
The person who arranged for the release of this announcement on
behalf of the Company was Colin Bird, Executive Chairman and
Director.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources
PLC
Tel +44 (0) 20
Colin Bird, Chairman 7581 4477
Beaumont Cornish Limited - Nomad Tel +44 (0) 20
Roland Cornish/James Biddle 7628 3396
Novum Securities Limited - Joint Broker +44 (0) 20 7399
Colin Rowbury /Jon Belliss 9400
Shard Capital Partners LLP - Joint Broker Tel +44 (0) 20
Damon Heath 7186 9952
Qualified Person:
Colin Bird: The technical information contained in this
announcement has been reviewed, verified, and approved by Colin
Bird, C.Eng, FIMMM, South African and UK Certified Mine Manager and
Director of Galileo Resources plc, with more than 40 years'
experience mainly in hard rock mining.
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END
MSCUPUWCBUPWGPA
(END) Dow Jones Newswires
September 05, 2023 08:46 ET (12:46 GMT)
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