logo-loader
viewGalileo Resources PLC

Galileo Resources negotiates offtake agreement ahead of Zambia operations start

The three-year renewable deal would be for the supply of ore for up to 60,000 tonnes per annum to Jubilee’s Kabwe zinc refinery

Galileo Resources PLC - Galileo Resources negotiates offtake agreement ahead of Zambia operations start
The resources indicate reasonable prospects of around 500,000 tonnes at 16% zinc for 77,000 tonnes of metal

Galileo Resources PLC (LON:GLR) said negotiations over a zinc ore offtake agreement with Jubilee Metal Group PLC (LON:JLP) are progressing “satisfactorily”.

The three-year renewable deal being discussed involves the supply of ore for up to 60,000 tonnes per annum, from Galileo’s Star zinc project to Jubilee’s Kabwe zinc refinery.

READ: Galileo Resources set to apply for mining permit at Star zinc project

Payment rates are likely to be consistent with similar agreements within the industry based on a sliding scale against grade, set at a minimum of 14% in this instance, and price.

Galileo is targeting to commence mining at the Star project, located in Zambia, in the second quarter next year pending authority’s approval and further funding.

The resources indicate reasonable prospects of around 500,000 tonnes at 16% zinc for 77,000 tonnes of metal.

“Negotiations are advancing satisfactorily towards an industry normal arrangement and allows us to do the necessary administration and planning to bring the projects into production,” said Galileo’s chief executive Colin Bird.

“The suitability of the potentially much larger Kashitu deposit and its vanadium content offers the opportunity of a long-term sustainable ore supply.”

The AIM-listed firm has a 95% stake in the Kashitu prospect, where it will commence exploration and testing “as soon as practicable”, as an additional resource to the Star project.

Shares were down 1.0% to 0.51p in the afternoon.

Quick facts: Galileo Resources PLC

Price: 0.475 GBX

AIM:GLR
Market: AIM
Market Cap: £2.65 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Galileo Resources PLC named herein, including the promotion by the Company of Galileo Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

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