7th Sep 2015 16:32
LONDON (Alliance News) - Galileo Resources PLC on Monday reported a loss on a sizeable impairment charge, as the exploration and development mining company was hit by the slump in commodity prices.
The company's GBP10.7 million loss in the year ended March 31 was largely due to an impairment charge booked on its exploration and evaluation assets. In the prior year, the company's loss was GBP4.2 million.
Galileo completed the acquisition of St Vincent Minerals Inc, the owner of the Gabbs copper/gold project in Nye County, Nevada, during the year.
Its former chief executive, Brian Gavin, died suddenly on October 29. He came as part of the St Vincent deal, and Chairman Colin Bird said the company had been looking forward to working with him.
In particular, the company had wanted to develop the St Vincent Minerals portfolio and other acquisitions. Meanwhile, Bird said the company is considering opportunities in light of the slump in commodities.
"Commodity prices are being driven down by an almost unstoppable force, which is relentless and quite alarming. It is in these times that the brave prosper and as such the board continues to search out opportunities, which current conditions have presented like never before," Bird said.
Elsewhere, Bird said that Galileo decided to sell its interest in the Glenover Rare-Earth Project because of the "current and future forecasted low rare-earth prices".
"The extended low price forecast together with the processing and marketing complexities make the Glenover project more suitable for a company specialising in the rare-earth business," Bird said.
"The Glenover project, from a technical and commercial prospective, remains potentially attractive and our partners Fer-Min-Ore combined with other potential industry players are more suited to advance the project. We therefore granted Fer-Min-Ore an option to work with our potential industry partners, agreeing to sell our interest should they find an acceptable offer," Bird added.
By Samuel Agini; [email protected]; @samuelagini
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