Galileo Resources PLC Update on sale of Kalahari Copper Belt Licences (9074L)
16 September 2021 - 3:59PM
UK Regulatory
TIDMGLR
RNS Number : 9074L
Galileo Resources PLC
16 September 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
16 September 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 announcements on 26 January 2021, 2 August 2021 and 1 September
2021 announces that all the conditions precedent have been met in
relation to its conditional licence sale agreement with ASX listed
Sandfire Resources Limited ( ASX:SFR) ("Sandfire") entered into on
22 January 2021 and varied on 30 July 2021 and 1 September 2021
(the "Licence Sale Agreement"). 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.
Completion: Completion of the Licence Sale Agreement is
anticipated to occur on or around 22 September 2021. Sandfire
will:
1) at Completion pay to the group US$1.5M in cash for the 9
Kalahari Copper Belt licences being sold (the "Included Licences")
; and
2) following Completion issue 370,477 Sandfire ordinary shares
to the Company with a current market value A$2.43M (approx.
US$1.79M) based on the closing Sandfire share price of A$6.55 per
Sandfire share on 14 September 2021 (being the last trading date
before the date of this announcement) for a right of first refusal
in relation to the 13 Kalahari Copper Belt licences retained by the
Company (the "Excluded Licences").
Colin Bird Chairman & CEO commented:
" The completion of this transaction with Sandfire represents a
major step forward for Galileo in its Kalahari Copper Belt
endeavours.
We are pleased to be working with Sandfire Resources, who are a
successful Australian copper and gold producing company with a
market capitalisation of over A$1 billion and a large copper silver
mine development programme in Botswana where they have recently
been awarded a mining licence and we look forward to our
association with them. Sandfire have a significant position in the
Kalahari Copper Belt and hence we feel that this arrangement will
benefit both parties to further enhance their positions. 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 in the
Kalarahi Copper Belt which is part of the Northwest Botswana Rift
which the USGS in 2015 reported as the world's most prospective
area for yet-to-be discovered sediment hosted copper deposits.
Galileo will soon be announcing results of its recent Botswana
exploration "
Reimbursed Exploration Expenditure: Within one month of
Completion Sandfire is to reimburse Galileo up to US$500K of
exploration expenditure incurred by Galileo in relation to licence
obligations of certain Included Licences being transferred to
Sandfire (the "Reimbursed Exploration Expenditure");
Exploration Commitment: Sandfire has to spend US$4M on the
Included Licences (the "Exploration Commitment") within two years
of Completion (the "Exploration Period") and if the US$4M is not
spent, any shortfall will be paid to the Company. The Exploration
Commitment is to be reduced by the amount of the Reimbursed
Exploration Expenditure.
Success Payment: a one-off success payment is to be paid to the
Company for the first ore reserve reported under JORC Code 2012
edition on the Included Licences which exceeds 200,000 tonnes of
contained copper (the "First Ore Reserve") in the range of US$10
million to US$80 million depending on the amount of contained
copper in the First Ore Reserve (the "Success Payment"). US$2
million of the Success Payment will be held in escrow for up to
three years pending any claim by Sandfire under the Licence Sale
Agreement.
Rights of First Refusal: Sandfire will have a right of first
refusal if the Company wishes to transfer or sell an interest in
one or more of the Excluded Licences. The Company has a right of
first refusal if Sandfire wishes to transfer or sell part of one or
more of the Included Licences other than to a related body
corporate.
Included Licences sold to Sandfire
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 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%
================================== ====================
For further information, please contact: Galileo Resources
PLC
Colin Bird, Chairman Tel +44 (0) 20 7581
4477
---------------------------------- ------------------------
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
---------------------------------- ------------------------
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
---------------------------------- ------------------------
Shard Capital Partners LLP - Tel +44 (0) 20 7186
J oint Broker 9952
Damon Heath
---------------------------------- ------------------------
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