Galileo Resources PLC Update on Sale of Kalahari Licences to Sandfire (1578H)
02 August 2021 - 4:00PM
UK Regulatory
TIDMGLR
RNS Number : 1578H
Galileo Resources PLC
02 August 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the C ompany's obligations under Article 17 of MAR.
For immediate release
2 August 2021
Galileo Resources Plc
("Galileo" or "the Company")
Update on Sale of Kalahari Copper Belt Licences
to Sandfire Resources Ltd ("Sandfire")
Galileo Resources plc ("Galileo" or the "Company") further to
its announcement on 26 January 2021 is pleased to announce that on
30 July 2021 it entered into a variation agreement (the Variation
Agreement) with ASX listed Sandfire Resources Limited ( ASX:SFR)
("Sandfire") in relation to its conditional licence sale agreement
(the "Licence Sale Agreement") with Sandfire. Unless indicated to
the contrary defined terms in Galileo's announcement dated 26
January 2021 in relation to the Licence Sale Agreement have the
same meaning.
The Parties have agreed to amend the Licence Sale Agreement to
facilitate the continuity of exploration expenditure on the
Included Licences and to amend the list of Included Licences and
Excluded Licences in accordance with the Variation Agreement.
The key commercial terms of the Variation Agreement are to make
the following variations to the Licence Sale Agreement:
i) Change the long stop date for the meeting of the conditions
from 31 July 2021 to 31 August 2021;
ii) Sandfire to at completion of the Licence Sale Agreement,
reimburse Galileo up to US$500,000 of exploration expenditure
incurred by Galileo in relation to licence obligations of certain
Included Licences being transferred to Sandfire (the "Reimbursed
Exploration Expenditure");
iii) Sandfire's US$4,000,000 Exploration Commitment under the
Licence Sale Agreement to be reduce by the amount of the Reimbursed
Exploration Expenditure;
iv) PL 368/2018 which was due to expire on 30 September 2021 to
be removed from the list of Included Licences to be transferred to
Sandfire as this licence is, with the agreement of Sandfire, being
relinquished; and
v) Removing the option for Sandfire to elect to pay the Success
Payment under the Licence Sale Agreement by issuing Sandfire shares
to Galileo which means the Success Payment if due will be paid in
cash. Note: given the limited exploration conducted on the Included
Licences to date and the many years that it could take to establish
an Ore Reserve, there can be no guarantee that any such Success
Payment will be forthcoming.
Updated list of Included Licences and Excluded Licences.
Included Licences to be assigned to Sandfire at completion:
Licence ID Title Holder Beneficial Interest
PL 044/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 045/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 122/2020 Africibum Co Pty Ltd 100%
================================== ====================
PL 154/2020 Africibum Co Pty Ltd 100%
================================== ====================
PL 250/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 251/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 366/2018 Africibum Co Pty Ltd 100%
================================== ====================
PL 367/2018 Africibum Co Pty Ltd 100%
================================== ====================
Excluded Licences to be retained by the Galileo group
Licence ID Title Holder Beneficial Interest
PL 039/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 040/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 001/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 002/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 003/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 004/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 005/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
PL 041/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 042/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 046/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 047/2018 Virgo Business Solutions Pty Ltd 100%
================================== ====================
PL 123/2020 Africibum Co Pty Ltd 100%
================================== ====================
PL 253/2018 Crocus-Serv Resources Pty Ltd 100%
================================== ====================
The Company will provide a further update(s) on the Licence Sale
Agreement as and when appropriate.
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581
4477
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Ed Slowey - Technical Director Tel +353 (0) 872274377
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Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628
Roland Cornish/James Biddle 3396
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Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
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Shard Capital Partners LLP - Tel +44 (0) 20 7186
J oint Broker 9952
Damon Heath
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