Half-year Report

RNS Number : 3962N
Galileo Resources PLC
29 January 2021

Galileo Resources PLC

(“Galileo” or “the Company” or “the Group”)

Unaudited interim results for the six months ended 30 September 2020


Galileo (AIM: GLR), the exploration and development mining company, announces its unaudited interim results for the six-month period ended 30 September 2020. A copy of the interim results is available on the Company’s website, www.galileoresources.com.

 Operational Highlights



 Acquisition of Exploration Assets in Botswana

Period under review

  • Galileo acquired 100% of Botswana-incorporated Crocus-Serv (Pty) Ltd (“Crocus”), whose assets comprise of 21 copper and nickel-PGE (Platinum Group Elements) exploration Prospecting Licences (“PLs”) in the highly prospective Kalahari Copper Belt (“KCB”) and the Limpopo Mobile Belt (“LMB”) in western and eastern Botswana respectively. The consideration of £163,020 for the acquisition comprised the issue of a total 38,814,246 new Galileo ordinary shares of 0.1p at 0.42p each and a separate cash payment of £10,828.
  • The Company commenced development of an exploration programme for the KCB properties.
  • The Company’s subsidiary, Crocus, submitted, in terms of the Botswana Environmental Assessment Act (2011), a draft Environmental Management Plan (“EMP”) for the KCB project to the Department of Environmental Affairs (“DEA”) Botswana for review.


Post the period under review

  • Galileo undertook a heliborne-EM geophysical surveying over several licences in its highly prospective Kalahari Copper Belt Project, specifically PL250/2018, PL251/2018, PL39/2018 and PL40/2018. Preliminary overview of the results is considered very promising, with the EM data interpreted to show several highly prospective geological settings for copper-silver mineralisation. Detailed data interpretation is under way, utilising Spectral Geophysics, a consultancy that was involved in the discovery of the A4 Dome deposit (targeted from EM data) and the Company will announce these conclusions once known. The most prospective EM targets will be selected for early drill testing.
  • On 16 October 2020, Galileo completed (the “Completion Date”) of the acquisition of 100% of Africibum Co Pty Ltd (“Africibum”) and its interests in the North East Kalahari Copper Belt Project in Botswana. The Company acquired 100% of Africibum Co (Pty) Ltd, incorporated in Botswana (Company number 1828747) (“Africibum”) and its 100% interest in five prospecting licences PL366/2018, PL367/2018, PL368/2018, PL122/2020, PL123/2020 and two mining tenement applications in Botswana (the “North East Kalahari Copper Belt Project”).
  • The Africibum licences include the Quirinus copper-silver prospect with historic shallow drill intercepts in a three- hole RC drilling programme which include 4m @ 1.7% Cu, 13g/t Ag and 6m @ 0.9% Cu, 14g/t Ag. The intercepts occur within a series of copper-in-soil anomalies that extend for 13.4km in total, much of it untested.
  • The Quirinus prospect lies within 15km of major copper-silver discoveries, part of Cupric Canyon Capital’s Khoemacau Project.
  • On 25 January 2021 Galileo entered into two legally binding agreements with ASX listed Sandfire Resources Limited (ASX: SFR) (“Sandfire”). The first agreement being a conditional licence sale agreement (the “Licence Sale Agreement”) and the second a share subscription agreement (the “Share Subscription Agreement”). The Licence Sale Agreement provides for the sale of 9 of the Company’s Kalahari Copper Belt Licences (the “Included Licences”) which the Company acquired in May and October 2020. Sandfire will pay an aggregate consideration of US$3 million payable on the Settlement Date of which US$1.5 million will be paid in cash and US$1.5 million by the issue of 370,477 Sandfire ordinary shares to the Company at an issue price of A$5.227 per share, being the VWAP of the Sandfire share price for the 10 trading days prior to the date of signing the Licence Sale Agreement. Under the terms of the agreements Sandfire committed to spend US$4 million on the Included Licences within two years of settlement and if the US$4 million is not spent, any shortfall will be paid to the Company. (Sandfire will have a first right of refusal in relation to the acquisition of the 15 Kalahari Copper Belt Licences being retained by the Company (the “Excluded Licences”) (“ROFR: Excluded Licences”). Settlement is conditional upon:


  1. The parties having executed the Share Subscription Agreement;
  2. Ministerial consent for the transfer of the Included Licences by the Botswana Minister of the Ministry of Minerals, Energy and Water Resources (“Ministerial Consent”);
  3. ASX and AIM regulatory approvals;
  4. Approval of the acquisition of the Included Licences by the Competition Authority of Botswana (or confirmation from such authority or from either party’s Botswana legal counsel that such approval is not required) (“Competition Approval”);
  5. Duly executed transfers of the Included Licences in the form required by the Mining Act under which a 100% interest in the Included Licences may be transferred.

If the Ministerial Consent and / or the Competition Approval is not granted by the Long Stop Date (31 July 2021 or such later date agreed by the parties) the agreement shall automatically terminate and cease to have effect and no Party shall have any obligation or liability to any other Party.



 Star Zinc & Kashitu

Period under review

  • Galileo agreed an arrangement (“Arrangement”) with BMR to assume the rights to BMR’s Mauritian subsidiary, Enviro Mining Limited and its wholly-owned Zambian subsidiaries, which include, amongst other things the title to the licences for Star Zinc and Kashitu (zinc willemite) Projects. The Arrangement, which is subject to Zambian Ministry approval, is for nil consideration since the Company has earned-in its 95% right to the two projects. Galileo has decided to cease seeking Ministry approval and therefore will no longer be assuming the rights from BMR.


Post the period under review

  • On 25 November 2020 Galileo announced that it had signed a Marketing Agreement with Zopco S.A. (“ZopCo”) in relation to the potential sale of zinc willemite ore from the group’s 95% owned Star Zinc project. Zopco is a Geneva based independent trading company focused on non-ferrous metals and concentrates.



Glenover Phosphate Project (“Glenover”)

Period under review

  • Glenover continued to progress Department of Mineral Resources approval of its application for a mining right, for which the only outstanding matter remains a Record of Decision (“RoD”) from the Department of Water and Sanitation (“DWS”) on the proposed Tailings Storage Facility (“TSF”) design.
  • Glenover continued to identify potential investors in the Glenover project and initiated preliminary discussions, which are ongoing.


Post the period under review

  •  The final TSF design report was completed by Golder Associates (Pty) Ltd in November 2020 and has been submitted to the DWS for its RoD, with a decision expected during Q1 2021.



 Period under review

  • In June 2020, the Company raised £900,000 before expenses (1 June 2020: AIM – RNS number 45490) by way of a placing of 112,500,000 Galileo ordinary 0.1p shares at a 14% discounted price of 0.8p per share. The Company intended to use the proceeds of the placing for general working capital towards exploration on the 15 Kalahari Copper Belt Licences in Botswana being retained by the Company under the Licence Sale Agreement and progressing its two Zambian zinc projects.


Post the period under review

  • On 25 January 2021, the Company entered into a Share Subscription Agreement with Sandfire who agreed to subscribe for 41,100,124 ordinary shares of 0.1p in the Company (“Sandfire Shares”) at a price of 2.68p per share, being a 25% premium to the 10 day VWAP of the Company’s share price as at 22 January 2021, raising £1.1 million (US$1.5 million at current conversion rates). The Sandfire Shares will be issued at a premium of 17% to the closing mid-price of the Galileo Shares on 25 January 2021 of 2.30p and admitted for trading on AIM on or around 9 February 2021. This will represent a 4.62% interest in Galileo.


For further information, please contact:


Colin Bird, Chairman & CEO   Tel +44 (0) 20 7581 4477
Edward Slowey, Executive Director



Tel +353 (1) 601 4466



Beaumont Cornish Limited

Nominated Advisor

Roland Cornish/James Biddle


Novum Securities Limited – Broker

Colin Rowbury/ Jon Belliss






Tel +44 (0)20 7628 3396



Tel +44 (0)20 7382 8416


Statement of Responsibility for the six months ended 30 September 2020

The directors are responsible for preparing the consolidated interim financial statements for the six months ended 30 September 2020 and they acknowledge, to the best of their knowledge and belief, that:

  • the consolidated interim financial statements for the six months ended 30 September 2020 have been prepared in accordance with IAS 34 – Interim Financial Reporting, as adopted by the EU;
  • based on the information and explanations given by management, the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated interim financial statements. However, any system of  internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss;
  • the going concern basis has been adopted in preparing the consolidated interim financial statements and the directors of Galileo have no reason to believe that the Group will not be a going concern in the foreseeable future, based on forecasts and available cash resources;
  • these consolidated interim financial statements support the viability of the Company; and
  • having reviewed the Group’s financial position at the balance sheet date and for the period ending on the anniversary of the date of approval of these financial statements they are satisfied that the Group has, or has access to, adequate resources to continue in operational existence for the foreseeable future.


Colin Bird                                Chairman and Chief Executive Officer

29 January 2021


The full Unaudited interim results for the six months ended 30 September 2020 are available in our Financials section.