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

Galileo Resources shares leap over 20% on positive broker comment to Star Zinc project option exercise move

In a note to clients today, ‘house’ broker Beaufort Securities said the “potential to acquire an interest in the Star Zinc project is positive news for Galileo”
Zinc pellet
In late afternoon trading, Galileo shares were 22.7%, or 0.42p higher at 2.30p

Galileo Resources PLC (LON:GLR) saw its shares leap over 20% higher today in reaction to Thursday’s news the group is s 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), with broker comment possitive.

In late afternoon trading, Galileo shares were 22.7%, or 0.42p higher at 2.30p.

In a note to clients today, ‘house’ broker Beaufort Securities  said the “potential to acquire an interest in the Star Zinc project is positive news for Galileo.”

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

The broker’s  analysts said: “We note that zinc prices continue to be well supported on the back of dwindling inventories caused by declining global production.

“The availability of primary zinc deposits is diminishing and the Star Zinc project has a non-JORC compliant resource of 0.3Mt grading 20.2% Zn which remains open along strike and at depth. “

They added: “We look forward to the completion of the settlement agreement followed by a formal JV agreement with BMR as well as confirmation of the non-JORC resource.

“In the meantime, we maintain our speculative buy on the stock.”

In its statement yesterday,  Galileo 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 Star Zinc project option.

The AIM-listed firm 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 the loan to BMR

READ: Galileo Resources signs terms sheet to advance Glenover project

Beaufort Securities yesterday completed a placing of 54,672,500 new ordinary shares in Galileo 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 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.

View full GLR profile View Profile

Galileo Resources PLC Timeline

Related Articles

June 14 2018
In April, Vast also acquired an indirect interest of 23.75% in the Eureka gold mine
Sample from Thackaringa Cobalt Project
September 05 2018
Recent pre-feasibility study confirmed that the Thackaringa project is of global significance as a potential source of high-purity cobalt for the battery revolution.
gold bars
August 02 2018
Arc Minerals has significant upside at kalaba in Zambia

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