Galileo Resources PLC Star Zinc and Kashitu Licences Agreement reached (5581J)
April 14 2020 - 5:16AM
UK Regulatory
TIDMGLR
RNS Number : 5581J
Galileo Resources PLC
14 April 2020
For immediate release
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
14 April 2020
Galileo Resources Plc
("Galileo" or "the Company")
Arrangement Agreed to Secure Title to Star Zinc and Kashitu
Licences
Galileo is pleased to announce that it has agreed with BMR Group
plc (BMR) an optimal arrangement ("Arrangement ") for executing the
conditions in the Binding Heads of Terms (announced 13 September
2018) with BMR's Mauritian subsidiary, Enviro Mining Limited (EML),
in connection with title to the licences for the Company's Star
Zinc and Kashitu zinc projects in Zambia.
The Arrangement involves Galileo assuming the rights to EML and
its wholly-owned Zambian subsidiaries, with the exception of the
Kabwe small scale mining licence 7083-HQ-SML and associated rights
to property and plant held by Jubilee Group Metals in relation to
their Integrated Kabwe Project. The Arrangement will be for nil
consideration since the Company has already earned-in the rights to
the Star Zinc and Kashitu projects.
On completion of the Arrangement, which is subject to Zambian
Ministry (ZM) approval, the Company will be in a position to
finalise third-party offtake agreements for Star Zinc and to
continue its exploration activities on the Kashitu prospect.
Application for ZM approval of the Arrangement has been
initiated.
Colin Bird CEO said "This Arrangement completes, subject to
Ministry approval, all matters necessary for Galileo actively to
pursue mining development of the Star Zinc project and accelerate
exploration of Kashitu. The two projects combined has the potential
for a significant Zinc development in Zambia "
Editor's note
Pursuant to the Binding Heads of Terms (announced 13 September
2018) and paragraph 13.2 therein, the Company exercised its right,
at its sole election and risk, to proceed to the completion of the
acquisition of the Kabwe Residual Rights (Large Scale Mining
Licence 6990-HQ-LML) , including the Kashitu Zinc willemite
exploration prospect ("Kashitu Zinc") and the remaining 15% of the
shares, that Galileo currently did not hold in Enviro Zambia
Limited (the "Sale Shares") (together the "Acquisition). As a
result of the Acquisition, Galileo increased its interest in Enviro
Zambia Limited from 85% to 100%. Enviro Zambia Limited owns 95% of
Enviro Processing Zambia Limited. The above mentioned Arrangement
(subject to Zambian regulatory approval ) will eliminate the need
to transfer Star Zinc's large-scale exploration licence
19653-HQ-LEL and the Kabwe Residual Rights (Large Scale Mining
Licence 6990-HQ-LML), including the Kashitu Zinc from the current
title holder Enviro Processing Ltd ("EPL"), a subsidiary of
EML.
Completion of this Acquisition will add substantially to the
Company's prospective zinc metal base and increased its beneficial
interest to 95% in its advanced Star Zinc project. The Kashitu Zinc
mineralisation has the added benefit of vanadium, which 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.
The Directors consider its proximity to the Kabwe refinery adds
potentially immense value to the acquisition and look forward to
defining the quantum of this prospective deposit.
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
J oint Broker 9952
Damon Heath
--------------------------
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END
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