Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Galileo Resources to acquire Star Zinc project in Zambia through joint venture with BMR Group

The AIM-listed miner has also raised around £1mln via a placing to fund the Star Zinc move and other projects
Galileo plans to subscribe for a 51% equity stake in the joint venture with BMR

Galileo Resources PLC (LON:GLR) has announced it is to exercise its option to acquire the Star Zinc project in Zambia through a joint venture to be established with BMR Group PLC (LON:BMR), and has raised around £1mln via a placing to fund the move and other projects.

In a statement today,  the AIM-listed firm said it has entered into a binding agreement with BMR to conditionally advance the firm US$591,600 - at an interest rate of 12% per annum - which is intended to be used for the purpose of completing the exercise of the option.

READ: Galileo Resources says preliminary drilling results show Concordia copper project "promising and well worth pursuing

Galileo plans to subscribe for a 51% equity stake in the joint venture through a newly created special purpose vehicle, to be named Enviro Mining Limited, which will be financed by the cancellation of that loan.

In late afternoon trading, Gallielo shares held steady at 2.38p, while BMR shares jumped over 30%, or 1.00p higher to 4.25p. 

Colin Bird, Galileo’s chairman and CEO said: "This joint venture with BMR on the Star Zinc property gives us a position in the very promising Star Zinc resource close to Lusaka, Zambia.

“The availability of primary Zinc deposits is diminishing and Star Zinc is open ended in both directions and depth with the strong possibility of other similar occurrences within the concession boundaries.

“Our first step will be to confirm the current non JORC resource, followed by trenching and sampling of other areas and thereafter drilling."

Beaufort Securities raises over £1mln via placing

Galileo also announces that the company's broker, Beaufort Securities, today completed a placing of 54,672,500 new ordinary shares at a price of 2.0p each to raise £1,093,450 before expenses.

The group said, in addition to its acquisition of interest in the Star Zinc project, it intends to use the proceeds of the placing and a director's subscription to fund, amongst other things, follow-up exploration and drilling on its US gold property in Nevada, and advancing the company's Glenover Phosphate project in South Africa.

Full-year losses narrow

The expansion plans came after Galileo reported full-year results in a separate statement earlier today which saw its loss narrow as the disposal of its US gold asset was offset by a foreign exchange boost.

The AIM-listed miner sold the Gabbs gold-copper property in Nevada for US$2.5mln cash in August 2016 for which it booked a £469,259 loss.

Galileo reported a total comprehensive loss for the year ended March 31 2017 of £16,675, narrower than the £784,499 loss posted a year earlier thanks to a foreign exchange gain of £1.4mln, versus a £364,872 currency loss the previous year.

The firm’s headline loss for the year was £1.4mln after the Gabbs disposal, compared to a £419,627 loss a year earlier, with operating expenses rising to £871,776 compared to £435,862 the year before.

READ: Galileo Resources signs terms sheet to advance Glenover project

Looking ahead, Galileo simply noted that drilling at the Concordia project has been completed and the results are under review.

In June, a major phosphate producer confirmed its desire to undertake a two-phase pilot plant phosphate flotation Galileo’s 34%-owned Glenover project in South Africa.

In his statement, Galileo’s chairman Colin Bird concluded “we remain committed in our quest to identify a large resource, which will be transformational for the Company and its shareholders.”

View full GLR profile View Profile

Galileo Resources PLC Timeline

Related Articles

Archer hopes to disrupt current technology for quantum computing
September 20 2018
Archer collaborated with the University of New South Wales to show Campoona graphite can be used in a commercially scalable lithium-ion battery.
Checking a Redmoor core sample
May 11 2018
The Redmoor project's inferred resource has 45,000 tonnes of contained tin equivalent.
maps of Australia with company projects marked
April 17 2018
Samples from the Mt Read Cobalt Project graded up to 7,800 ppm cobalt.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use