26th Feb 2016 16:06
LONDON (Alliance News) - Galileo Resources PLC Friday pushed back the deadline for the potential deal to sell its interests in a joint venture company by six months, extending the deal which was agreed way back in January 2015.
Galileo is in the process of finalising a deal to sell all of its interest and shares in the capital of Glenover Phosphate Proprietary Ltd to the its partner in the venture, Fer-Min-Ore Proprietary Ltd, for USD4.0 million.
Galileo said it has agreed with Fer-Min-Ore to extend the deadline by which the proposed transaction must be completed by six months to August 28.
Importantly, that is the second extension to the deadline. Galileo originally struck the deal in January 2015, and agreed to provide the first extension in August, which pushed the deadline back to this Sunday. That prompted the second extension revealed Friday.
The offer still remains subject to approval from authorities in South Africa and is also reliant on Fer-Min-Ore securing financing to complete the deal.
"Further due diligence work has been carried out during the extension period and is now almost complete. Whilst resource markets remain extremely difficult we felt it reasonable to grant Fer-Min-Ore a further extension to allow them to source the funds for completion," said Chairman Colin Bird.
Galileo shares were down 2% to 1.25 pence per share on Friday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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