26th Jan 2021 13:56
Galileo Resources PLC - miner with projects in Botswana, Zambia and South Africa - Enters into two binding agreements to sell nine Kalahari copper belt licences for USD3 million to Sandfire Resources Ltd, and for Sandfire to make USD1.5 million share subscription into Galileo.
First agreement involves selling Sandfire the 9 licences, as well as giving Sandfire first right of refusal to buy the 15 Kalahari copper belt licences retained by Galileo. Notes this would see Sandfire paying USD1.5 million in cash for the licences and an additional USD1.5 million from the issue of 370,477 Sandfire shares at a price of USD4.04 per share.
Second agreement involves Sandfire acquiring 41.1 million Galileo shares at a subscription price of 2.68 pence per share for USD1.5 million, representing a 4.6% interest in Galileo.
"This transaction with Sandfire represents a major step forward for Galileo in its Kalahari copper belt endeavours. The transaction allows Sandfire to explore the included licences, which are in close proximity to their major mine build, and also allows Galileo to carry out exploration on the excluded licences," says Chief Executive Colin Bird.
Current stock price: 2.30 pence
Year-to-date change: up 39%
By Zoe Wickens; [email protected]
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