The AIM-listed firm said it will acquire the project by paying Africibum 42mln fully paid shares in Galileo at a price of 0.779p each, a 1.4% discount to its closing price on Monday, 35mln of which will be issued to the seller’s shareholders while the 7mln remaining shares will be issued to one of the shareholders in relation to the reimbursement of costs incurred by Africibum to date.
The acquisition payment also consists of 10mln warrants to acquire Galileo shares at an exercise price of 2p each, a 153% premium to its closing price on Monday.
The North East Kalahari Copper Belt project covers 2,241 square kilometres and comprises five issued prospecting licences and two licence application areas.
Galileo said the acquisition will extend its ground position in the Kalahari Copper Belt to include the Quirinus copper-silver prospect with historic shallow drill intercepts, adding that the tenement also lies with 15 kilometres of major copper-silver discoveries that are pat of Cupric Canyon Capital's Khoemacau project.
"I am very pleased that we have been able to conditionally acquire these licences, which are in an area of high prospectivity in the Kalahari Copper Belt. They are part of the Boseto Copper project surrounds being 15km from the processing area. The target areas have already been reconnaissance drilled and copper intercepts have been received. The area known prospectivity is some 14km in length and other areas require geophysics and geochemical work before prospectivity establishment”, Galileo executive chairman and chief executive Colin Bird said in a statement.
“The proposed acquisition of this target completes the company's Kalahari Copper Belt portfolio and we look forward to exploration in our expanded footprint in the Kalahari Copper Belt which is part of the Northwest Botswana Rift which the USGS in 2015 reported as the world's most prospective area for yet-to-be discovered sediment hosted copper deposits", he added.
Galileo’s shares surged 7% to 0.84p in early deals on Tuesday.