4th Feb 2014 11:44
LONDON (Alliance News) - Galileo Resources PLC Tuesday announced that it has agreed to acquire the entire issued share capital of St Vincent Minerals Inc.
The emerging rare earth exploration company said the acquisition would be made by way of a share exchange in which Galileo will issue 21.7 million shares in exchange for the entire issued share capital of SVM.
Following the deal, SVM shareholders will hold roughly 19% of the enlarged share capital of Galileo and the Galileo said the agreed transactional value is CAD4.3 million.
SVM has assets in the US including the resource-estimate level Gabbs gold-copper property in Nye county, Nevada.
The Gabbs property has an estimated inferred resource of 1.61 million gold equivalent ounces in 57 million tonnes graded at 0.56 grams per tonne gold and 0.234% copper.
Galileo said that it is now proposing to appoint SVM's Chief Executive Officer Brian Gavin to the board as Chief Executive Officer of Galileo.
The company also said it plans to relinquish its greenfield exploration projects, including the Nkombwa Hill rare earth project in Zambia.
Galileo Resources shares were trading flat at 10.00 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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