Star Zinc and Kashitu Licences Agreement reached

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 Andrew Sarosi, Executive Director	Tel [phone] 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 - J oint Broker Damon Heath	Tel [phone]

 

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