Update on Sale of Kalahari Licences to Sandfire

RNS Number : 1578H

Galileo Resources PLC

02 August 2021

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the C ompany's obligations under Article 17 of MAR.

For immediate release

2 August 2021

Galileo Resources Plc

("Galileo" or "the Company")

Update on Sale of Kalahari Copper Belt Licences

to Sandfire Resources Ltd ("Sandfire")

Galileo Resources plc ("Galileo" or the "Company") further to its announcement on 26 January 2021 is pleased to announce that on 30 July 2021 it entered into a variation agreement (the Variation Agreement) with ASX listed Sandfire Resources Limited ( ASX:SFR) ("Sandfire") in relation to its conditional licence sale agreement (the "Licence Sale Agreement") with Sandfire. Unless indicated to the contrary defined terms in Galileo's announcement dated 26 January 2021 in relation to the Licence Sale Agreement have the same meaning.

The Parties have agreed to amend the Licence Sale Agreement to facilitate the continuity of exploration expenditure on the Included Licences and to amend the list of Included Licences and Excluded Licences in accordance with the Variation Agreement.

The key commercial terms of the Variation Agreement are to make the following variations to the Licence Sale Agreement:

i)  Change the long stop date for the meeting of the conditions from 31 July 2021 to 31 August 2021;

ii)  Sandfire to at completion of the Licence Sale Agreement, reimburse Galileo up to US$500,000 of exploration expenditure incurred by Galileo in relation to licence obligations of certain Included Licences being transferred to Sandfire (the "Reimbursed Exploration Expenditure");

iii)  Sandfire's US$4,000,000 Exploration Commitment under the Licence Sale Agreement to be reduce by the amount of the Reimbursed Exploration Expenditure;

iv)  PL 368/2018 which was due to expire on 30 September 2021 to be removed from the list of Included Licences to be transferred to Sandfire as this licence is, with the agreement of Sandfire, being relinquished; and

v)  Removing the option for Sandfire to elect to pay the Success Payment under the Licence Sale Agreement by issuing Sandfire shares to Galileo which means the Success Payment if due will be paid in cash. Note: given the limited exploration conducted on the Included Licences to date and the many years that it could take to establish an Ore Reserve, there can be no guarantee that any such Success Payment will be forthcoming.

Updated list of Included Licences and Excluded Licences.

Included Licences to be assigned to Sandfire at completion:

Licence ID	Title Holder	Beneficial Interest
PL 044/2018	Virgo Business Solutions Pty Ltd	100%
PL 045/2018	Virgo Business Solutions Pty Ltd	100%
PL 122/2020	Africibum Co Pty Ltd	100%
PL 154/2020	Africibum Co Pty Ltd	100%
PL 250/2018	Crocus-Serv Resources Pty Ltd	100%
PL 251/2018	Crocus-Serv Resources Pty Ltd	100%
PL 366/2018	Africibum Co Pty Ltd	100%
PL 367/2018	Africibum Co Pty Ltd	100%

Excluded Licences   to be retained by the Galileo group

Licence ID	Title Holder	Beneficial Interest
PL 039/2018	Virgo Business Solutions Pty Ltd	100%
PL 040/2018	Virgo Business Solutions Pty Ltd	100%
PL 001/2018	Crocus-Serv Resources Pty Ltd	100%
PL 002/2018	Crocus-Serv Resources Pty Ltd	100%
PL 003/2018	Crocus-Serv Resources Pty Ltd	100%
PL 004/2018	Crocus-Serv Resources Pty Ltd	100%
PL 005/2018	Crocus-Serv Resources Pty Ltd	100%
PL 041/2018	Virgo Business Solutions Pty Ltd	100%
PL 042/2018	Virgo Business Solutions Pty Ltd	100%
PL 046/2018	Virgo Business Solutions Pty Ltd	100%
PL 047/2018	Virgo Business Solutions Pty Ltd	100%
PL 123/2020	Africibum Co Pty Ltd	100%
PL 253/2018	Crocus-Serv Resources Pty Ltd	100%

The Company will provide a further update(s) on the Licence Sale Agreement as and when appropriate.

For further information, please contact: Galileo Resources PLC

Colin Bird, Chairman	Tel [phone]
Ed Slowey - Technical Director	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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