Galileo Resources PLC (AIM:GLR) has provided an update on Afrimat Ltd’s intention to acquire Glenover Phosphate Proprietary Ltd, worth a total of 300mln South African rand (£14.6mln).
Galileo owns 30.7% of Glenover shares, with a further 4.99% held on its behalf by Galagen Propriety Ltd, which Afrimat, an open pit mining company, will buy for 107mln rand (£5.2mln).
Previous announcements explained that Galileo had already received £2.4mln from Afrimat for Glenover’s assets, as well as £525,000 from the Vermiculite Mining Right over the deal.
Approval is still needed before the deal can be finalised, from both the South African Department of Mineral Resources and Energy and the South African Competition Commission.
Colin Bird, chairman & CEO of Galileo, said: “We are very pleased that the Afrimat board has decided to proceed with the Glenover acquisition. Upon completion of the Glenover acquisition the company's share of the Glenover consideration will be approximately £5.2mln which will be a welcome addition to the company's treasury in a market which is not currently that favourable for fundraising for exploration companies.
"On behalf of the Galileo board, I would like to recognise the professionalism and quality of the extensive test work conducted by Afrimat and to wish Afrimat every success in the future with the Glenover's Phosphate and rare earths business."
Galileo shares are up 3.8% to 1.6p.