Galileo Resources PLC (AIM:GLR, FRA:2GA) (AIM: GLR) said an agreement to sell a package of nine licences in the Kalahari copper belt to Sandfire Resources Ltd for US$3mln has been amended.
The companies agreed to amend the licence sale agreement, announced in January, to facilitate the continuity of exploration expenditure on the included licences.
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The number of licences to be sold has reduced to eight as one of the areas (PL 368/2018) was due to expire at the end of September and both companies have now agreed to relinquish it.
Under the revised terms, Sandfire will reimburse Galileo up to US$500,000 of exploration expenditure on completion of the sale and deduct this sum from its previous commitment to spend US$4mln on exploration.
The amended agreement also removes an option for Sandfire to elect to pay a ‘success payment’ through the issue of shares to Galileo with a payment, if due, to be paid in cash instead. Galileo noted that there is no guarantee that any ‘success payment’ will be forthcoming given the limited exploration conducted on the licences to date and the many years it could take to establish an ore reserve estimate.