Galileo Resources PLC Potential sale of interest in Joint Venture (4127D)
28 Gennaio 2015 - 4:08PM
UK Regulatory
TIDMGLR
RNS Number : 4127D
Galileo Resources PLC
28 January 2015
28 January 2015
Galileo Resources Plc
("Galileo" or the "Company")
Potential sale of interest in joint venture
Galileo (AIM: GLR), the exploration and development mining
company, announces that it has entered into an exclusive Sale
Agreement ("Sale Agreement") with Fer-Min-Ore Proprietary Limited
("Fer-Min-Ore"), in terms of which the Company, inter alia, has
offered to sell ("Offer") and Fer-Min-Ore ("Purchaser") has offered
to purchase all the Company's rights, title, interest and shares in
the capital of Glenover Phosphate Proprietary Limited ("Glenover")
for a purchase consideration of US$4 million ("Proposed
Transaction"). Glenover, in which the Company holds a 33.99%
interest (29 % direct and 4.99 % through its shareholding in
Galagen), owns the Company's joint venture interest with
Fer-Min-Ore in its rare earth/phosphate project in the Limpopo
province of the Republic of South Africa.
Colin Bird, Chairman of Galileo, said: "The Glenover phosphate
project has been advanced in association with our partner
Fer-Min-Ore to a status where significant new funds together with
specific industry expertise are required. The Company is currently
focussing on their highly prospective copper/gold projects in
Nevada."
The Offer is subject to:
a. the Proposed Transaction being completed within four months
of concluding the Sale Agreement, after which period , or such
later date as may be mutually agreed, the provisions of the
Agreement will not take effect; and
b. to the extent required, approval of the Proposed Transaction
by relevant regulatory bodies, including, but not limited to, any
approvals required from the Department of Minerals and Energy
(South Africa) or other relevant regulatory authority in terms of
section 11 of the Mineral and Petroleum Resources Development Act
28 of 2002.
Further information on Glenover, financial effects of the
Proposed Transaction and use of proceeds
The carrying value of Galileo's investment in Glenover as at the
latest audited balance sheet date of 31 March 2014, was GBP2.3
million (GBP2.2 million in the unaudited interim balance sheet of
Galileo as at 30 September 2014) which is approximately equal to
the potential consideration of US$4 million (GBP2.6 million at an
exchange rate of GBP1 - US$1.52) and, if the Proposed Transaction
is completed as contemplated, the Company anticipates that there
will be no substantial effect on the Group's net assets.
Galileo's equity accounted loss for the year ended 31 March 2014
amounted to GBP0.038 million (30 September 2014: loss of 0.013
million).
If the Proposed Transaction is completed Galileo intends to
apply the sale proceeds on a basis to be determined by the Board as
regards both general working capital and its other projects,
principally advancing the exploration of the Company's copper-gold
prospects in Nevada comprising, inter alia, mapping, geochem
sampling, geophysics and drilling.
Further details of Glenover and its rare earth and phosphate
project and the Company's Nevada projects are available from the
Company's website: www.galileoresources.com
A copy of this announcement is available on the Company's
website www.galileoresources.com.
You can also follow Galileo on Twitter: @GalileoResource
For further information, please contact:
Colin Bird Chairman Tel +44 (0) 20 7581 4477
Andrew Sarosi, Technical Director Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628 3396
Roland Cornish
Hume Capital - Joint Broker Tel +44 (0) 20 3693 1470
Jon Bellis
Daniel Stewart & Co - Joint Broker Tel + 44 (0) 20 7776 6596
David Coffman/Colin Rowbury
This information is provided by RNS
The company news service from the London Stock Exchange
END
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