Sale of Gabbs Gold-Copper Property for US$ 2 mill

RNS Number : 3573I

Galileo Resources PLC

30 August 2016

 

For immediate release

30 August 2016

Galileo Resources Plc

("Galileo" or "the Company")

Sale of Gabbs Gold-Copper Property in Nevada USA and new Ferber claims acquired

Highlights

·     Sold Gabbs property in Nevada for USD 2.5 million (GBP1.9 million) in cash.

·     210 claims added to the Company's highly prospective Nevada Ferber property

·     Funds will allow aggressive exploration of the South African Concordia Copper project

·     Gabbs sale removes requirement for capital raising and consequent share dilution in mid-term.

Colin Bird Chairman and CEO said: "The Gabbs sale allows us to focus on the Concordia copper project in South Africa, where the management has gained most of its success and experience. The cash received will cover our short-to-medium-term working capital. The Board agreed to the sale based on its strategy to focus on copper and particularly in Southern Africa."

Galileo (AIM: GLR), the exploration and development mining company, and its wholly owned subsidiary St. Vincent Minerals US Inc (SVMUS) are pleased to announce the execution of, and closing under, an Asset Purchase Agreement (the "Agreement") with a subsidiary of Waterton Precious Metals Fund II Cayman, LP (Waterton). Under the terms of the Agreement, Waterton has purchased the Company's advanced Gabbs gold-copper property in Nevada for a consideration of US$2.5 million cash. The reason behind the sale, amongst other things, is the Company's strategic decision to reduce exposure to gold exploration and focus instead on exploration and funding on its Concordia copper project in Namaqualand, Northern Cape Province in South Africa.  The Company retains its greenfield Ferber copper-gold and Crow Springs gold properties in Nevada, for which the Company continues to seek JV/farm-out partners or sale and as announced 27 June 2016, it is in a farm-out JV with Orogen Gold Resources plc on its Silverton gold property also in Nevada.  The Company announces further that it has added another 210 claims surrounding Ferber, following the quitclaim of these claims by a major mining company.   

Information on Gabbs

In 2014, the Company acquired St Vincent Minerals US Inc.'s portfolio of Nevada properties, which included the Gabbs property, through acquisition of its Canadian parent company, St Vincent Minerals Inc., for CDN$4.3 million, by way of a share exchange. No values were ascribed to the individual properties comprising the portfolio at acquisition. Since acquisition, the Company has spent GBP53,000 on Gabbs for  Bureau of Land Management and Nevada County claims renewal fees.

Further details are available from the Company's website which details the Company's project portfolio as well as a copy of this announcement: www.galileoresources.com

ENDS

You can also follow Galileo on Twitter: @GalileoResource

For further information, please contact:

Galileo Resources PLC Colin Bird, Chairman	Tel [phone]
Andrew Sarosi, Executive Director	Tel [phone]
Beaumont Cornish Limited  - Nomad   Roland Cornish/James Biddle	Tel [phone]
Beaufort Securities Limited - Broker Jon Belliss	Tel [phone]

 

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