22 Feb Second Payment for Interest in Luansobe Project
RNS Number : 3499C
Galileo Resources Plc
(“Galileo” or “the Company”)
Update and Completion of Second Payment for 75% Interest in Luansobe Copper Project, Zambia
Galileo Resources plc (“Galileo “or the “Company”) is pleased to report on progress in modelling of historic drill data at Luansobe and the completion of the second payment to the vendors to secure an initial 75% interest in the Luansobe Copper Project, Zambia (the “Project”) comprising Small Scale Exploration Licence No. 28340-HQ-SEL (the “Licence”).
- Considerable progress has been made by consultants Addison Mining Services in compilation of drill data for 154 holes (drilled 1921 to 2007) and initial modelling of the deposit
- Two concurrent development options are being considered;
- The potential for a small open pit mine of circa 3-5 million tonnes to exploit the up-dip portion of the copper deposit in the northwest of the licence area
- The prospect for a larger mine to develop the resources down-dip and along strike to the southeast where drill data is more sparse
- It is planned to commence preparation for shallow mining in the northwest before year end while undertaking a drilling campaign to confirm historic drill results and to further define a potentially larger resource towards the southeast
- The Company is making arrangements for the coming week to view drill core believed to be held at the nearby Mopani copper mine to further increase confidence in the historic drill reports
- The second payment in cash and shares has been made under the terms of the JV Agreement with the Luansobe Vendor to secure an initial 75% interest in the Project
Colin Bird Chairman & CEO said: “We are pleased with the outcome of the interrogation of historic drill data which indicates good potential for a small open pit in the range of 3-5 million tonnes of copper ore based on current economics. If the modelling continues to be satisfactory, we will prepare for commencement of a small open pit mining operation using third party contractors. We are particularly encouraged by the larger potential – we are planning for further drilling in the southeast of the property to test previous suggestions of larger tonnages and grades in excess of 1.5% Cu.”
Joint Venture Summary and Update
As previously announced on 30 December 2021 the Company entered into a Joint Venture Agreement (the “JV Agreement”) with Statunga Investments Limited (the “Vendor”) covering the Luansobe Copper Project, Zambia comprising a Small Scale Exploration Licence.
The JV Agreement provides the Company the right to earn an initial 75% interest in a special purpose joint venture company (the “JV Company”) by making an initial payment of US$200,000 and a second payment of US$200,000 in the initial period from the date of the JV Agreement by 20 February 2022 (the “Initial JV Period”) and issuing 5,000,000 Galileo shares to the Vendor. The second payment has been completed and the shares will now be issued at a price of 1.125pence per share. The Company will now be issued 75% of the shares in a to be established Zambian joint venture company (the “JV Company”) to own the Licence (subject to Ministerial Consent) and the Vendor will be issued 25% of the shares in the JV Company.
Application to trading on AIM: Application will be made to the London Stock Exchange for a total of 5,000,000 new Galileo Shares to be admitted to trading on AIM which rank pari passu to the existing ordinary shares in the Company. It is expected that Admission will become effective and that dealings in the new Galileo Shares will commence at 8.00 a.m. on 28 February 2022.
On Admission, the abovementioned figure of 1,096,946,844 Ordinary Shares (the “Enlarged Share Capital”) may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Galileo under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
The Luansobe area is situated some 15km to the northwest of Mufulira Mine in the Zambian Copperbelt which produced well over 9Mt of copper metal during its operation. It forms part of the northwestern limb of the northwest – southeast trending Mufulira syncline and is essentially a strike continuation of Mufulira, with copper mineralisation hosted in the same stratigraphic horizons. At the Luansobe prospect mineralisation occurs over two contiguous zones, dipping at 20-30 degrees to the northeast, over a strike length of about 3km and to a vertical depth of at least 1,250m.
The top 30m from surface is reported to be leached, with oxide mineralisation occurring below this depth to about 70m below surface. Beyond this depth, copper generally occurs as sulphides. The deposit is reported to be open and relatively untested at depth. About 30% of the total contained copper occurs in acid soluble form (as copper oxide) – this is expected to be higher in the shallower parts of the deposit.
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
|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”).