TIDMGLR
RNS Number : 3167V
Galileo Resources PLC
11 January 2013
11 January 2013
Galileo Resources Plc
("Galileo" or the "Company")
Legal Due Diligence on Acquisition of Nkombwa Hill
Rare Earth Project Completed
The Board of Galileo Resources Plc (AIM: GLR), the emerging
African Rare Earth exploration and development company, is pleased
to announce that, further to the announcements of 25 July and 10
September 2012, the legal Due Diligence on Galileo's acquisition of
Rare Earth International's (REI) Nkombwa Hill Rare Earth Project
has now been finalised.
In the update released on 10 September 2012 the Company reported
that the only factor preventing completion of the due diligence was
the issue of the tenure of Large Scale Prospecting License No.
12198-HQ-LPL that covers the Nkombwa Hill deposit. At the time, key
licensing-documentation was not accessible at the license
administration centre (the "Cadastre") of the Zambian Ministry of
Mines and Mineral Development (the "Ministry") and Galileo was
therefore unable to gain sufficient title confidence to complete
the acquisition. The Zambian legal practise contracted by the
Company recently gained full access to the Cadastre and have now
finalised the due diligence study and reported their findings to
the Company. They conclude that the license covering the Nkombwa
Hill project is in good standing with, and the sole existing
exploration license over the area recognised by, the Ministry.
Colin Bird, Executive Chairman of Galileo Resources, said: "We
are extremely pleased that the due diligence report is now
finalised and that it confirms that the Nkombwa prospecting license
is in good standing and unencumbered. As a consequence, the Board
has approved the issue of 5.25 million Galileo ordinary shares to
REI prescribed in the Heads of Agreement (announced 25 July 2012).
Galileo based on previous work carried out by REI and others are
excited about the prospects for the Nkombwa Hill project and intend
aggressively to advance the project to resource level in the
shortest possible time whereby seeking to earn our 50% interest in
the project.
The Company has therefore issued and allotted 5.25million new
Ordinary Shares of 5p per Ordinary Share (the "Ordinary Shares") to
the vendors (the "Consideration Shares"). Application has been made
for the Consideration Shares to be admitted to trading on AIM and
it is expected that Admission will occur, and dealings commence, on
or about 17 January 2013.
Accordingly, the enlarged issued share capital of the Company,
will comprise 88,307,183 Ordinary Shares in the capital of the
Company. The Consideration Shares will, when issued, rank pari
passu in all respects with the existing issued Ordinary Shares of
Galileo.
For further information, please contact:
Colin Bird, Chairman & CEO Tel +44 (0)20 7581 4477
Jock Harmer, Technical Director Tel +27 (0) 82 3239768
Andrew Sarosi, Executive Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited: Nominated Tel +44 (0)20 7628 3396
Advisor and Broker
Roland Cornish/James Biddle
Shore Capital Stockbrokers Limited: Tel +44 (0)20 7408 4090
Joint Broker
Jerry Keen/Toby Gibbs
Gable Communications Tel +44 (0)20 7193 7463
Justine James M +44 (0) 7525 324431
A copy of the announcement is available on the Company's website
www.galileoresources.com
Technical Sign-Off
Dr Jock Harmer, Technical Director of Galileo, who holds a Ph.D.
Geochemistry, University of Cape Town, is a Registered Professional
Natural Scientist with SACNASP, and a 'qualified person' as defined
under the AIM Rules for Companies and a competent person under the
SAMREC, JORC and NI 43-101 reporting standards. The technical parts
of this announcement have been prepared under Jock Harmer's
supervision and he has approved the release of this
announcement.
Notes
Galileo Resources Plc is a natural resource exploration company.
The Company has an experienced management team with proven
technical and commercial background. The flagship property is the
Glenover Phosphate concession, which produced phosphate for many
years. Phosphate however, is now subordinated to Rare Earth
Elements (REEs). The project area is known to contain REEs and that
the grades, if of sufficient size and continuity may well lead to a
medium-sized operation for the production of REOs.
Galileo Resources currently has a 31.66% interest in the
Glenover Project and has the option, via additional stage payments
as set out in the Company's Admission Document, to earn up to a
maximum interest of 73.73%.
One of the key benefits of the project for a medium-sized
operation is that, if REEs, which have been shown to be present in
the stockpiles from the previous phosphate operations, can be
proven to compliant resource category, the cost of mining it and
the associated risks should substantially be reduced.
The concession is of considerable size and hosts mineralisation
types suitable for potential REE presence. The aim is to
investigate the mineralisation types for REE presence and content
with the view to proving up a mineable resource of REOs.
The Company can acquire a 35% interest in the Nkombwa Hill REE
Project in Zambia. Intensive surface sampling over the last 18
months has revealed a number of drill-ready targets having
significant levels of REE mineralisation: REE concentrations
recovered from kilogram-scaled outcrop samples range up to 23%
TREO.
Technical Glossary
Phosphate (P(2) O(5) ): an oxide of phosphorus
Rare earths (REE): a set of sixteen chemically similar elements
in the periodic table made up of the fourteen stable lanthanides
lanthanum to lutetium, plus yttrium and scandium. The REE are
commonly subdivided into the light REE (LREE), being the elements
from lanthanum to samarium; and the heavy REE (HREE), the remaining
seven lanthanides Europium to Lutetium, plus Yttrium.
REO (rare earth oxide): the oxide form of the rare earth elements
Mt Million tonnes
TREO: total rare earth oxides
The economically significant rare earth elements include:
La: Lanthanum Used extensively as a catalyst in the refining of
crude oil; its ability to store 400 times its volume of hydrogen is
utilised in rechargeable NiMH batteries that are an essential
component of hybrid motor vehicles; La changes the refractive index
of glass and is used in the manufacture of lenses for digital
cameras.
Ce: Cerium Primary uses are in high quality polishing of glass,
silicon wafers, solar cells; in auto catalytic converters; rich red
colour pigments; low energy light bulbs.
Pr: Praseodymium As an additive Pr gives a pure yellow colour to
glass and brilliant pastel greens and yellows for glazes; can be
used along with Nd in permanent magnets (see below).
Nd: Neodymium Major application is in the manufacture of NdFeB
permanent magnets (neo-magnets), the most powerful permanent
magnets currently known. NdFeB magnets are essential in new "clean
energy" technology such as wind turbines and hybrid and electrical
motor vehicles; their high strength have allowed the miniaturising
of hard disc drives and personal audio devices. Nd, with Y, is
widely used in the manufacture of lasers.
Eu: Europium Widely used as a phosphor: Eu alloys uniquely
provide a perfect red colour for LED, LCD and plasma television and
monitor screens; also used in thin film superconductor alloys and
in lasers
Gd: Gadolinium Uses include neutron capture capability and in
compounds as a contrasting agent in radiography and magnetic
resonance imaging in medical diagnostics
Sm: Samarium Alloyed with cobalt Sm forms a strong permanent
magnet that has the highest resistance to thermal
demagnetization.
Y: Yttrium Uses include lasers, as host for europium in TV red
phosphor, alloyed with boron and cobalt high temperature
superconductors and microwave filters
This information is provided by RNS
The company news service from the London Stock Exchange
END
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