28th Jan 2015 15:30
LONDON (Alliance News) - Galileo Resources PLC Wednesday said it has entered into an exclusive agreement to sell its 34% stake in joint venture company Glenover Phosphate Proprietary Ltd to partner Fer-Min-Ore Proprietary Ltd for USD4 million.
Galileo, an exploration and development mining company, owns the joint venture interest with Fer-Min-Ore in the rare earth/phosphate project in the Limpopo province of South Africa.
"The Glenover phosphate project has been advanced in association with our partner Fer-Min-Ore to a status where significant new funds together with specific industry expertise are required. The company is currently focusing on their highly prospective copper/gold projects in Nevada," said Galileo Chairman Colin Bird in a statement.
The carrying value of Galileo's investment in Glenover was GBP2.3 million at end-March and GBP2.2 million at end-September, roughly equal to the potential sale consideration of USD4 million.
If the sale is completed, Galileo said it intends to use the sale proceeds for both general working capital and for other projects, principally advancing the exploration of its copper-gold prospects in Nevada.
Galileo shares were down 0.7% at 3.60 pence Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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