The exploration firm said it had placed 100mln new shares with institutional and retail investors at a placing price of 0.5p each, a 13.8% discount to its last close price of 0.58p on 16 April.
Galileo said the proceeds of the placing would be used to produce an independent resource estimate for the Star Zinc project as well as a preliminary pit design and the application for a small-scale mining permit.
The share placing follows an update for the project in December, when the company said a non-JORC conceptual grade tonnage estimate from phase two drilling August suggested the project’s maiden resource estimate would be a larger tonnage and contained metal at lower grade than previously announced.
Colin Bird, Galileo’s chairman, said the funds would allow the company to “add further value to what is undoubtedly a significant project with potential for early production”.
“The directors believe that the potential ore at Star Zinc lends itself to a simple trucking operation for parties looking to enhance their feedstock with high grade zinc ore and early- stage discussions have started with potential off-take partners."