The AIM-listed miner said the 50mln new shares, with a placing price of 1.1p or a 20% discount on the 11 April 2018 mid-market close of 1.375p, would be admitted to trading on AIM at or around 17 April 2018.
In connection with the placing, the group also granted warrants to subscribe for 50mln shares at an exercise price of 2p per share. The warrants may be exercised at any time in the period expiring on the second anniversary of admission on the placing shares.
In an additional comment, the company said it had decided against a pre-emptive issue of shares, saying the placing funds would not have been available on the terms offered and in the timescale envisaged if combined with a pre-emptive offering.
The new capital would be put to work at Galileo’s Star Zinc project in Zambia, where on 10 April 2018 it announced it had intercepted exceptionally high zinc grades of between 41.51% and 46.58% across three holes drilled, indicating a large zone of high-grade zinc mineralisation.
Colin Bird, chairman of Galileo Resources, said: "Following the positive drill results announced on April 10 2018 the Company has immediately completed a placing to enable the Company to do all things necessary including geophysics, modelling and other pre-drilling work in order to fast track the next programme of drilling, which should add further value to what is undoubtedly a significant discovery."