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Galileo increases beneficial interest in the Star Zinc project to 95%

Galileo is consolidating its asset position in Southern Africa

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The expanded footprint could mean the company controls more zinc in the ground

Galileo Resources PLC (LON:GLR) has acquired the 15% of its subsidiary Enviro Zambia Ltd that it didn’t already own.

The net effect of this acquisition is to bring Galileo’s beneficial interest in the Star Zinc project up to 95%. 

WATCH: Galileo Resources begins off-take talks with Jubilee Metals for Star Zinc ore

The Zambian government holds the remaining 5%.

With the acquisition comes control of the Kashitu Zinc project, which lies some six kilometres from the Kabwe zinc refinery controlled by Jubilee Metals Group PLC (LON:JLP).

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.

 

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Price: 0.5013 GBX

AIM:GLR
Market: AIM
Market Cap: £2.8 m
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Galileo Resources begins off-take talks with Jubilee Metals for Star Zinc ore

Galileo Resources PLC's (LON:GLR) Colin Bird updates Proactive London's Andrew Scott after announcing talks are soon to begin with Jubilee Metals PLC (LON:JLP) over the supply of zinc ore to the Sable refinery in Zambia. Last month, Jubilee struck a deal to buy the Sable zinc refinery...

on 2/5/19

2 min read