The net effect of this acquisition is to bring Galileo’s beneficial interest in the Star Zinc project up to 95%.
The Zambian government holds the remaining 5%.
Galileo believes that Kashitu Zinc has similar mineralisation to Star Zinc and future potential ore from Kashitu could supplement that from Star Zinc
What’s more, historically, vanadium has been identified on Kashitu Zinc.
The original consideration for the acquisition, as agreed in September 2018 comprised a cash component of £50,000 and the issuance of 15mln Galileo shares. However, as laid out in the binding heads of terms, 9.6mln further Galileo shares have been issued in lieu of the £50,000 cash payment.
“Completion of this acquisition, adds substantially to the company's prospective zinc metal base,” said Galileo chief executive Colin Bird.