30th Dec 2021 08:54
(Alliance News) - Galileo Resources PLC on Thursday announced its entry into a joint venture with Statunga Investments, for the development of the Luansobe copper project in Zambia.
Shares in the natural resources producer were 12% higher at 1.09 pence on Thursday morning in London.
Under the joint venture agreement, Galileo will pay USD400,000 via two payments by February 20, which will give it a 75% stake in the Zambian joint venture, which will work on completing a project feasibility study for Luansobe. The project has an estimated mineral resources of 5.5 million tonnes at 1.6% total copper and 0.5% acidic soluble copper.
In addition, the company will issue 5.0 million shares to the owners of Statunga Investments.
The licence over the project comprises a small-scale exploration licence with a four-year term expiring February 15, 2025, and covering an area of 918 hectares.
Galileo expects a feasibility study to be completed in 18 months from February 20, and could be extended by another six months if during the initial period there is a JORC-compliant resource for the project.
"We are very pleased with the addition of the Luansobe brownfield project within the Zambian Copperbelt, with the project situated directly along strike and in close proximity to the very large Mufulira mine which has produced well over 9 million tonnes of copper metal during its operations," said Chair and Chief Executive Colin Bird.
"Galileo proposes to undertake a substantial drilling programme to update the reported resource to JORC-compliant status with the twin objective of delineating a near-surface copper oxide deposit with early development potential and an underlying sulphide deposit for larger-scale development," Bird added.
By Dayo Laniyan; [email protected]
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