GLR Galileo Resources Plc

 
TIDMGEIO 
 
19 May 2011 
 
                            GENERAL INDUSTRIES PLC 
 
                    ("General Industries" or the "Company") 
 
                   PROPOSED ACQUISITION AND ISSUE OF EQUITY 
 
Further to the announcements on 8 March 2011 and 10 March 2011, General 
Industries announces that agreement has now been reached, in principal and 
subject, inter alia, to completion of due diligence and contract, to acquire 
the entire share capital of Skiptons Global Investments Limited (BVI) 
("Skiptons") for a consideration of GBP10.16m to be satisfied by the issue of 
44.2m new 5p Ordinary Shares in the Company ("Ordinary Shares"). 
 
Skiptons has an interest in two joint venture agreements covering existing 
prospecting and mining rights, a rare earths project and opportunities to earn 
interests in prospecting rights to be applied for in mineral rich regions of 
South Africa. 
 
Firstly, and as announced on 10 March 2011, Skiptons had previously entered 
into an agreement to subscribe, at nominal value, for a 49% shareholding in 
Brightwater Trade and Invest 55 (PTY) ("Brightwater"), a South African based 
company which holds mining rights to stone aggregates in the Eastern Cape 
Province of South Africa. Brightwater intends to establish a quarry located 
near Umtata and supply local infrastructure projects. The shareholders of 
Brightwater also hold prospecting rights for iron ore and manganese in South 
Africa. Skiptons has the right, subject to certain conditions being fulfilled, 
to earn an interest of up to 74% in these projects. 
 
Second, Skiptons has entered into a joint venture agreement with Glenover 
Phosphates (PTY) Limited "Glenover", a Company based in South Africa. The 
agreement, subject to certain conditions being fulfilled, is for the 
exploration and development of a rare earths project located in the Limpopo 
Province of South Africa. The joint venture agreement was secured through the 
provision of a total of ZAR 2.5m (approximately GBP225,000) via a compulsory 
convertible loan to Glenover, funded by the Company. 
 
Following the acquisition of Skiptons, the Company intends to develop the rare 
earths project and carry out further evaluation and analysis of insitu rock 
with a view to establishing an overall resource. 
 
The acquisition will constitute a Reverse Take Over under the PLUS Markets 
Rules and accordingly will be subject to Shareholder's consent. The Company 
also intends to seek admission to AIM in conjunction with the completion of the 
acquisition. Further details and funding arrangements will be included in an 
AIM Admission Document which is currently being prepared and will be sent to 
Shareholders in due course. Accordingly, trading in the Company's shares on 
PLUS has been suspended with immediate effect. 
 
The Company also announces that it has completed the placing, subject to the 
acquisition completing and admission of the Ordinary Shares to trading on AIM, 
of 14.5m new Ordinary Shares at a price of 23p per share. This has been agreed 
with a number of institutions and private investors thereby raising 
approximately GBP3.3m. These funds have been raised to provide the Company with 
sufficient working capital to complete the acquisition of Skiptons and fund the 
ongoing Group. 
 
All enquiries: 
 
 
 
J R Wollenberg    Chairman 01784 437444 
 
 
 
Roland Cornish 
 
James Biddle 
 
Beaumont Cornish Limited 0207 628 3396 
 
 
 
END 
 

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