Glenover Assets Sale Update

RNS Number : 5732G

Galileo Resources PLC

30 March 2022

 

For immediate release

30 March 2022

Galileo Resources Plc

("Galileo" or "the Company" )

Glenover Assets Sale Update

Galileo Resources plc ("Galileo "or the "Company") further to its announcements on 9 December 2021 and 11 February 2022 is pleased to provide an update regarding the Glenover Asset sale between Glenover Proprietary Limited ("Glenover") and JSE Limited listed Afrimat Limited. Capitalised terms defined in these previous announcements have the same meaning in this announcement unless indicated to the contrary.

Highlights:

· The Company has received confirmation that all conditions for Afrimat Limited to acquire the Vermiculite Mining Right from Glenover have been met and that Glenover has elected for the Vermiculite Mining Right Consideration to be paid in cash, of which ZAR10M (approx. £523K) is due to the Company

Colin Bird Chairman & CEO said: " I am pleased that the Company has received confirmation that all conditions to acquire the Vermiculate Mining Right have been met and £523K is now due to the Company. This is a further favourable step in the progressive sale of the Glenover Asset. The funds will be employed in releasing value from our lithium project in Zimbabwe and Copper-Gold projects in Southern Africa".

Glenover Sale  

As previously announced the Company has a 29% direct and 4.99% indirect investment in Glenover held via Galagen Proprietary Limited who are Glenover's BEE partner and is potentially due a further ZAR102M (approx. £5.33M) being its portion of the share sale proceeds due under the Glenover Share Sale Agreement (the "Sale Shares Consideration") which is conditional on Afrimat by 15 June 2022 or, if an extension has been granted by 10 November 2022 exercising their option to acquire the Glenover Shares.

The Sale Shares Consideration will be settled in a combination of cash and Afrimat shares;

· 50% of the Sale Shares Consideration shall, at the election of Afrimat, be split between Afrimat shares based on the Afrimat 30 day VWAP at which the Afrimat shares traded on the JSE Limited on the relevant Effective Date and cash (Afrimat has to make this election on the relevant Effective Date); and

· 50% of the Sale Shares Consideration shall, at the election of the Sellers (which includes the Company), be split between Afrimat shares 30 day VWAP at which the Afrimat shares traded on the JSE Limited on the relevant Effective Date and cash (the Sellers have to make this election on the relevant Effective Date).

Colin Bird the Chairman of Galileo has waived in favour of the Company the bonuses awarded to him by Glenover in his capacity as a director of Glenover of 1.5% of the gross proceeds of the Glenover Agreements and these amounts will as received be added to the Transaction Awards previously announced that will, at the determination of the Company's remuneration committee, be paid as these transactions are successfully concluded.

You can also follow Galileo on Twitter: @GalileoResource

For further information, please contact: Galileo Resources PLC

Colin Bird, Chairman	Tel [phone]
Beaumont Cornish Limited - Nomad Roland Cornish/James Biddle	Tel [phone]
Novum Securities Limited - Joint Broker Colin Rowbury /Jon Belliss	[phone]
Shard Capital Partners LLP - Joint Broker Damon Heath	Tel [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

 

END

 

 

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