Galileo Resources PLC (AIM:GLR) has agreed the conditional sale of two Kalahari Copper Belt licences in Botswana to a subsidiary of Sandfire Resources Limited in a deal that brings in US$3 million upfront and keeps a larger exploration upside on the table.
The AIM-listed explorer said Metal Capital Exploration Limited, a wholly owned Sandfire subsidiary, will buy Virgo Business Solutions, which owns prospecting licences PL039/2018 and PL040/2018. Sandfire is acting as purchaser guarantor under the agreement.
Galileo could receive a one-off success payment of between US$20 million and US$80 million if a first qualifying JORC ore reserve on the licences contains at least 400,000 tonnes of copper.
The payment rises from US$20 million for reserves of at least 400,000 tonnes and below 600,000 tonnes, to US$40 million below 750,000 tonnes, and US$80 million at 750,000 tonnes or more.
Metal Capital has committed to spend $4.5 million on exploration within three years of completion, including US$2.25 million within 18 months and US$2.7 million on drilling and assaying. Subject to approvals, permits and consents, it has also committed to complete at least 4,000 metres of drilling by 31 December 2026.
Chairman Colin Bird said the transaction made “strategic sense” because Galileo’s main portfolio and people resources are focused in Zambia and Zimbabwe. Completion remains subject to approvals, including Botswana ministerial consent and competition clearance, with a long-stop date of 15 September 2026.
