Galileo Resources
PLC
29 July
2024
Galileo Resources
Plc
("Galileo" or the
"Company")
Commencement of Drill
Programme in the Western Foreland, Zambia
The Board of Galileo Resources Plc
("Galileo" or the "Company") is pleased to announce that the
Company has engaged a Zambian contractor to commence a drill
programme amounting to approximately 700 metres of drilling in the
initial phase on Licence 28001-HQ-LEL located in NW Zambia within
the Western Foreland domain, with rig mobilisation scheduled for
later this week.
Highlights
·
Licence 28001-HQ-LEL is located within the Western
Foreland domain, the district potentially hosting Kamoa - Kakula
style copper deposits in NW Zambia.
·
The Licence is ideally located along strike of the
Kamoa - Kakula mining complex in the DRC and adjacent to a
substantial exploration licence area across the border in Angola
acquired by Ivanhoe Mines which is targeting further extensions of
the Western Foreland.
·
The Company will be testing potential redox front
targets where suitable combinations of adjoining lithology have
created the correct environment for copper deposition.
·
The decision to drill has been preceded by an
extensive programme of reconnaissance and the reparation of roads
and bridges to provide safe access for drilling
equipment.
·
Collation of all necessary permits and approvals
and establishment of contacts with local chiefdoms has been
facilitated by Cooperlemon Consultancy, the Company's partner in
the Project.
Colin Bird, Executive Chairman said: "The operational
activities outlined represent the Company's initial drilling and
extended fieldwork at our prime licence in the Northwest region of
Zambia.
The licence is well situated in the Zambian Western Foreland
trend, which hosts the Kamoa mine across the border in the DRC,
about 100 miles northeast of our activities.
We
are pleased to have reached this juncture and look forward to the
initial results, which will certainly add to our database and
hopefully confirm our expectations for geological architecture
supporting our prognosis."
Joint Venture Agreement
As announced on 05 September 2023,
Galileo entered into a joint venture agreement with Cooperlemon
Consultancy Limited ("Cooperlemon") in relation to the exploration
for copper at large scale exploration license 28001-HQ-LEL in
Northwest Zambia (the "Licence"). Under the joint venture agreement
("JV Agreement"), Galileo agreed the following key terms of which
i) and iii) have been satisfied and ii) is ongoing:
Earn-in and Phase 1 exploration
budget: Galileo will earn a 65% interest in the joint venture
by:
i) An
immediate cash payment of US$230,000 to Cooperlemon:
ii) funding
exploration expenditure over an initial eighteen-month period
("Phase 1") on the Licence of not less than US$750,000. Exploration
is expected to commence in September-October 2023 and will comprise
both physical activity within the Licence boundaries (including but
not limited to mapping, soil geochemistry, geophysics and
drilling), and desktop studies, laboratory analysis and
interpretation of data and results. Galileo anticipates funding
this exploration expenditure from existing resources;
and
iii) for the issue
of 2,500,000 Galileo Resources plc shares (the "Consideration
Shares") at a price of 1.175 pence per share being the closing
Galileo share price on 4 September 2023 (totalling £29,375). The
Consideration Shares are subject to a three month lock up
arrangement and thereafter a further three months orderly market
arrangement. Under the orderly market arrangement, the
Consideration Shares can be sold via the Company's broker at a
price determined by the vendor (the "Nominated Sale Price")
which shall not be less than the lower of i) the 10 day VWAP
and ii) the closing bid price on the day before the fixing of the
Nominated Sale Price and the Company's broker will have 10 business
days to sell the shares at the Nominated Sale Price.
If the Phase 1 exploration results
are successful and prove the continuity of mineralisation at grades
suggesting the potential for the future development of a Mineral
Resource of not less than 500,000 tonnes of contained copper,
consistent with economic recovery at the depth of discovery with a
minimum internal rate of return of not less than 25% and a payback
period not exceeding 42 months (including the recovery of capital
expenditure), then there will be a second two year exploration
period ("Phase 2").
Phase 2 exploration budget: The Phase 2 exploration expenditure of US$1.5 million
will also be funded by Galileo who will be the operator of the
Licence for the duration of the Agreement.
Consequence of Trade Sale: If there is a trade or any other sale of the Licence and
/ or the Joint Venture during Phase 1 of the joint venture then
Galileo will be deemed to have a 55% interest in the Joint
Venture. A sale requires the agreement of both Galileo and
Cooperlemon.
Mine Development: In the
event the Licence advances to a point where they are commercially
viable and suitable for development then the licence will be moved
to a corporate entity to be owned 75% by Galileo and 25% by
Cooperlemon, and it will be the responsibility of the newly formed
corporate entity to raise all capital for mine development and
future operations.
Further information on the Licence
Licence No: 28001-HQ-LEL, which
comprises 52,083 hectares and expires on 31 May 2025, is held by L
and I Investments Limited ("L and I"), a private Zambian company
which with Cooperlemon is under the common control of local Zambian
parties. The Licence is located in North-West Zambia along the
Angolan-Zambian border. L and I has agreed with Galileo to be bound
by the terms and the conditions of the JV Agreement with
Cooperlemon (who is acting on their behalf) as though they were a
party to the JV Agreement.
Geology, location and prospectivity
The style of mineralisation and
associated geology and structure responsible for the Kamoa-Kakula
deposit operated by Ivanhoe Mines may extend into the North-West
Zambia.
The Western Foreland succession
determines the geology of the region, and the Licence lies within
the area where the Western Foreland lithology necessary for
Kamoa-style mineralisation can reasonably be expected to
occur.
Technical Sign-Off
Technical information in this
announcement has been reviewed by Edward (Ed) Slowey, BSc, PGeo,
Technical Director of Galileo. Mr Slowey is a geologist with more
than 40 years' relevant experience in mineral exploration and
mining, a founder member of the Institute of Geologists of Ireland
and is a Qualified Person under the AIM rules. Mr Slowey has
reviewed and approved this announcement.
You can also follow Galileo on
Twitter: @GalileoResource
For further information, please
contact: Galileo Resources PLC
Colin Bird, Chairman
|
Tel +44 (0) 20 7581 4477
|
Beaumont Cornish Limited -
Nomad
Roland Cornish/James
Biddle
|
Tel +44 (0) 20 7628 3396
|
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon
Belliss
|
+44 (0) 20 7399 9400
|
Shard Capital Partners LLP - Joint
Broker
Damon Heath
|
Tel +44 (0) 20 7186 9952
|
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Beaumont Cornish Limited, which is authorised and regulated in
the United Kingdom by the Financial Conduct Authority, is acting as
nominated adviser to the Company in relation to the matters
referred herein. Beaumont Cornish Limited is acting exclusively for
the Company and for no one else in relation to the matters
described in this announcement and is not advising any other person
and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of
Beaumont Cornish Limited, or for providing advice in relation to
the contents of this announcement or any matter referred to in
it.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
Technical glossary
"redox"
|
Oxidation/reduction reaction
occurring in the weathering zone along the water table.
|