24th Jun 2019 11:06
(Alliance News) - Galileo Resources PLC on Monday said it has raise its interest in the Star Zinc project to 95% from previous 80.75%, with the Zambian government holding the remaining 5%.
The exploration company said it has exercised its right to buy Kabwe Residual Rights, including the Kashitu Zinc willemite exploration prospect and the remaining 15% shares in Enviro Zambia Ltd from BMR Group PLC.
Enviro Zambia owns 95% of Enviro Processing Zambia Ltd, to which Star Zinc's large-scale exploration licence 19653-HQ-LEL remains to be transferred from BMR unit Enviro Processing Ltd.
The deal consideration comprises GBP50,000 in cash and issue of 15 million Galileo ordinary shares to BMR at 1.15 pence per share, worth therefore GBP172,500. Also, in lieu of the GBP50,000 cash payment, Galileo has agreed to issue 9.6 million shares to BMR priced at 0.52p.
"Completion of this acquisition, adds substantially to the company's prospective zinc metal base and has increased its beneficial interest to 95% in its advanced Star Zinc project. The Kashitu Zinc mineralisation has the added benefit of vanadium, which in today's terms , will add significant value to the overall metal package," Galileo Chief Executive Colin Bird said.
Shares in Galileo Resources were trading 1.0% higher at 0.52p each. BMR Group shares were untraded at 1.9p.
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