Galileo Resources PLC (AIM:GLR) is to sell its interests in the Glenover phosphate asset in South Africa.
The sale was agreed between Glenover Phosphate Proprietary Limited and South African mining group Afrimat for around £11.46mln (ZAR 250mln) plus the option to sell shares in Glenover for £14mln (ZAR 300mln).
AIM-quoted Galileo has a 29% direct interest in Glenover and an indirect 4.99% interest in the company held through a stake in Galagen Proprietary Limited, Glenover’s BEE partner.
"Galileo originally invested in Glenover in 2012 and this agreement is testament to the hard work of the Glenover management, our local shareholder Ferminore Proprietary Limited, and BEE partner Galagen,” said Galileo chief executive Colin Bird.
“The acquirer Afrimat, is a well respected South African mining group, who have carried out extensive critical testwork and due diligence, before proposing this acquisition.”
Bird added: “The successful completion of this transaction is a good example of how local South African groups can successfully work with an experienced international partner creating value for all parties and an asset that can be taken on for further development by an established South African mining group.”