Galileo Resources PLC (LON:GLR) said negotiations with a major fertiliser and phosphate producer (MPP) “are continuing positively” as it seeks to secure a 15-year supply agreement for phosphate from its Glenover project.
The AIM-listed miner said the producer had progressed the conditions precedent testwork, with results deemed satisfactory and was expecting to complete a remaining condition precedent over the next two months, namely the production of a 30-tonne bulk sample of phosphate rock for further testing in its fertiliser process.
Galileo added that an Environmental Impact Assessment/Management Programme (EIA/EMP) in relation to its application for a mining right at Glenover, submitted in February, was progressing on schedule with the Department of Mineral Resources in South Africa.
The news follows a successful placing by the group in April in which it raised £550,000 of working capital to fund the next stage of its Star Zinc project in Zambia.
Galileo chief executive, Colin Bird, said: "We are happy to be able to report that negotiations with the MPP on all matters relating to the definitive supply (offtake) agreement, an important hurdle for the Project, are continuing positively towards execution.
He added: “The EIA/EMP for the Project is on schedule for submission to the DMR on 26 May 2018. I am pleased to say that we continue to meet all the criteria to facilitate our aim to commence production from the Project. We will keep the market advised of progress on the Project.”
In late-morning trading, Galileo shares were up 3.7% at 1.3p.