TIDMGLR
RNS Number : 6603A
Galileo Resources PLC
30 September 2020
For immediate release
30 September 2020
Galileo Resources Plc
("Galileo" or "the Company")
Dissemination of a regulatory announcement that contains
inside information according to Regulation (EU) number 596/2014
(MAR)
Trading Update
Galileo Resources plc ("Galileo "or the "Company") further to
its announcement of 4 September 2020 regarding the publication of
its audited accounts for the year ended 31 March 2020 by 31
December 2020 the Company announces the following trading update in
relation to the Company's operations, cash position and the
publication of results.
Trading Update:
The summary is except where indicated for the period from 1
April 2020 to date and arranged in the following order, projects by
country, corporate, fundraising and performance metrics.
Zambia: Star Zinc Project ("Star Zinc") & Kashitu Prospect
("Kashitu")
On 14 April 2020, the Company agreed with BMR Group plc (BMR) an
optimal 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.
On 24 June 2019 the Company announced that it had acquired the
Kabwe Residual Rights, which includes the Kashitu Zinc willemite
prospect and the Sale Shares, being the 15% of the shares in Enviro
Zambia Limited that it did not previously own increasing the
Company's beneficial interest in the Star Zinc project to 95%
(previously 80.75%).
On 26 June 2019 the Company announced the completion of an
independently reported initial inferred resource estimate ("MRE")
in accordance with JORC 2012, for the Company's Zambian Star Zinc
project near Lusaka. The MRE reported inferred zinc resources with
a reasonable prospects of future economic extraction of
approximately 500,000 tonnes at 16% zinc for 77,000 tonnes of
contained metal above a cut-off grade of 2% zinc. This includes
approximately 340,000 tonnes at 21% zinc for 72,000 tonnes of metal
above a cut-off grade of 8%
Current update: Further to the announcement of 3 October 2019,
drill core material from the Star Zinc project was made available
to Jubilee Metals Group to facilitate bulk sample testing. The
potential contribution of silver and germanium from Star Zinc ore
will also be further assessed. It is planned to prepare an
application for a small-scale mining permit, including an
environmental permit, with mining to commence as soon as this
process is finalised - targeted for 2021. Star Zinc mining plans
and permissions are progressing favourably and the Company will
make an announcement in due course.
South Africa: Glenover Phosphate Project ("Glenover")
Current Update: Glenover continues to progress Department of
Mineral Resources approval of its application for a mining right,
for which the only outstanding matter remains a Record of Decision
(RoD) from the Department of Water and Sanitation (DWS) on the
proposed Tailings Storage Facility (TSF) design. The DWS raised
some issues with respect to the original proposed TSF design. A
modified design document is in preparation and Glenover expects to
complete and submit this to the DWS for its RoD during 2020.
Glenover continues to seek to identify potential investors in the
Glenover project.
Botswana: Acquisition of Exploration Assets in Botswana
On 7 May 2020 the Company announced that it had entered into an
exclusive and binding conditional Heads of Agreement with
Botswana-incorporated Crocus-Serv (Pty) Ltd ("Crocus") to acquire
100% of Crocus' issued share capital (the "Acquisition") for the
issue to Crocus of an aggregate 38,814,246 Galileo ordinary shares
(equivalent to GBP163,020 at a deemed price of GBP0.0042) and a
cash consideration of GBP10,828. Crocus assets include 21
exploration tenements in the prospective Kalahari Copper Belt and
Limpopo Mobile Belt of Botswana, Southern Africa. The Acquisition
was completed on 21 May 2020.
On 12 August 2020 the Company announced that it had approved the
start-up of exploration on its 100% owned property in the highly
prospective Kalahari Copper Belt ("KCB") in western Botswana.
On 15 September 2020 the Company announced the conditional
acquisition of 100% of Africibum Co Pty Ltd's interest in its North
East Kalahari corporate belt project in Botswana for 42 Million
shares in the Company and 10 million two year warrants with an
exercise price of 2 pence per share.
On 17 September 2020 the Company announced that it has commenced
a helicopter - borne electromagnetic survey (EM) over two of its
highly prospective tenures within its 100% held Kalahari Copper
Belt (KCB) project in western Botswana and expects to announce
preliminary results by 31(st) October.
Corporate: On 4 September 2020 the Company announced the
retirement of Andrew Sarosi as a director of the Company and the
appointment of Edward (Ed) Slowey who joined the board as a
technical director
Fundraising
On 17 April 2019, the Company completed a placing to raise
GBP500,000 (before expenses) through the issuance of 100,000,000
new ordinary shares at a placing price of 0.5p per share.
On 18 October 2019, the Company completed a placing to raise
GBP500,000 (before expenses) through the issuance of 125,000,000
new ordinary shares at a placing price of 0.4p per share.
On 1 June 2020 the Company announced a partially conditional
placing to raise GBP900,000 (before expenses) through the issuance
of 112,500,000 new ordinary shares at a placing price of 0.8p per
share, with the issue of 57,937,500 of the placing shares being a
conditional upon shareholder approval which was given at the
General Meeting on 18 June 2020.
Performance Metrics: As the Company is a pre-production
exploration mining company its key performance metric is its
ability to raise funds to support the Company's projects, take
advantage of new opportunities and cover general overheads. Since 1
April 2019 the Company has continued to support its existing
projects, and as summarised above i) announced an initial JORC 2012
inferred resource estimate for its Star Zinc project, ii) provided
drill core from the Star Zinc project available to Jubilee Metals
group to facilitate bulk sample testing, iii) continued to progress
Department of Mineral Resources approval for a mining right in
relation to Glenover , iv) acquired the highly prospective KCB
project in western Botswana and v) commenced a helicopter borne
electromagnetic survey at the KCB project.
On 31 March 2020 the Group had unaudited;
i) cash & cash equivalents of GBP352,644 (2019 GBP1,075); and
ii) trade creditors and payables of GBP576,759 (2019 GBP577,944)
During the year-ended 31 March 2020, the Company raised a total
of GBP1,000,000 before expenses (2019: GBP550,000) and since the
year-end, the Company has to date raised GBP900,000 before
expenses.
Publication of Results : As announced on 4 September 2020 a
result of the impact of COVID-19 in the countries where the Company
has companies namely, United Kingdom, South Africa and Zambia the
Company has applied for and been granted permission by Companies
House in England and AIM to delay the publication of its audited
accounts for the year ended 31 March 2020 by three months that is
by 31st December 2020.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581
Edward Slowey, Executive Director 4477
Tel +353 (1) 601 4466
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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