Galileo Resources PLC Kabwe Residual Rights - Acquisition Completes (0926D)
June 24 2019 - 2:00AM
UK Regulatory
TIDMGLR
RNS Number : 0926D
Galileo Resources PLC
24 June 2019
For immediate release
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
24 June 2019
Galileo Resources Plc
("Galileo" or "the Company")
Kabwe Residual Rights - Galileo Completes Acquisition
Issue of Equity
Highlights:
-- The Company has acquired the Kabwe Residual Rights, which
includes the Kashitu Zinc willemite (a) prospect ("Kashitu Zinc"),
and the Sale Shares: being the 15% of the shares in Galileo's
subsidiary Enviro Zambia Limited that it previously did not own
-- The Sale Shares increase the Company's beneficial interest in
the Star Zinc project to 95% (from previous 80.75%) with the
Zambian government holding 5%
-- Kashitu Zinc is some 6 km from Jubilee Metals Group plc 's
("JMG") Kabwe zinc refinery plant, which JMG is developing to
process its own willemite-bearing tailings and so potentially
available to treat ore as well from Star Zinc
-- The directors believe, that Kashitu Zinc has similar
mineralisation to Star Zinc and future potential "ore" from Kashitu
could supplement that from Star Zinc
-- Historically, vanadium has been identified on Kashitu Zinc.
-- Kashitu Zinc licence area is bigger than Star Zinc and is
therefore believed to have the potential for a much larger tonnage
based on interpretation of historical exploration on the
prospect
(a) Willemite a zinc silicate ore mineral
Galileo is pleased to announce that, pursuant to the Binding
Heads of Terms (announced 13 September 2018) and paragraph 13.2
therein, it has exercised its right, at its sole election and risk,
to proceed to the completion of the Proposed Transaction, namely
the acquisition of the Kabwe Residual Rights, including the Kashitu
Zinc willemite exploration prospect ("Kashitu Zinc") and the
remaining 15% of the shares, that Galileo currently does not hold
in Enviro Zambia Limited(the "Sale Shares") (together the
"Acquisition") (even if the terms of the Transaction Documents have
not yet been agreed), by giving notice in writing (the "Completion
Notice") to the BMR Group plc ("BMR") to proceed. The consideration
for the Acquisition comprises a cash component of GBP50,000 and the
issuance of 15,000,000 Galileo ordinary shares ("Consideration
Shares") of par 0.1p ("Ordinary Share") to BMR at a price of 1.15p
per Ordinary Share Also, in terms of the Binding Heads of Terms ,
Galileo has elected and BMR has agreed to the issuance of 9,615,385
Galileo ordinary shares priced at 0.52p ("Additional Consideration
Shares") in lieu of the GBP50,000 cash payment. As a result of the
Acquisition, Galileo increases its interest in Enviro Zambia
Limited from 85% to 100%. Enviro Zambia Limited owns 95% of Enviro
Processing Zambia Limited, to which Star Zinc's large-scale
exploration licence 19653-HQ-LEL remains to be transferred, subject
to Zambian regulatory approval, from a wholly owned subsidiary of
BMR, Enviro Processing Limited.
Colin Bird, Galileo CEO said " Completion of this acquisition,
adds substantially to the Company's prospective zinc metal base and
has increased its beneficial interest to 95% in its advanced Star
Zinc project. The Kashitu Zinc mineralisation has the added benefit
of vanadium, which in today's terms , will add significant value to
the overall metal package. Historical evidence has indicated large
tracts of willemite together with potential for sulphides and that
the Kashitu concession is larger than Star Zinc. Its proximity to
the Kabwe refinery adds potentially immense value to the
acquisition. We look forward to defining the quantum of this
prospective deposit"
Application will be made to the London Stock Exchange for a
total of 28,215,385 new ordinary shares of 0.1p each, ("New
Shares") to be admitted to trading on AIM. The New Shares comprise
the above-mentioned 24,615,385 Consideration and Additional
Consideration Shares, and 3,600,000 new ordinary shares to be
issued in lieu of broker fees, the latter priced at of 0.50p per
Ordinary Share. The New Shares have been issued and allotted in
terms of the company's general authority to issue shares, obtained
at its annual general meeting on 5 September 2018.
The New Shares will rank pari passu in all respects with the
existing Ordinary Shares of the company. These New Shares are
expected to be admitted to trading on AIM on or around 27 June
2019. The New Shares will, when issued, rank pari passu in all
respects with the existing Ordinary Shares.
Following the issue of the New Shares, the Company's issued
share capital will total 433,911,947 Ordinary Shares, with voting
rights. Shareholders in the Company may use this figure as the
denominator for the calculation, by which they would determine if
they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the Financial
Conduct Authority's Disclosure and Transparency Rules.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581
Andrew Sarosi, Executive Director 4477
Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628
Roland Cornish/James Biddle 3396
--------------------------
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
--------------------------
Shard Capital Partners LLP - Tel +44 (0) 20 7186
Joint Broker 9952
Damon Heath
--------------------------
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END
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