TIDMGLR
RNS Number : 5420N
Galileo Resources PLC
21 May 2020
For immediate release
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
21 May 2020
Galileo Resources Plc
("Galileo" or "the Company")
Acquisition of Copper Exploration Assets in Botswana
Issue of Equity
Galileo Resources plc ("Galileo "or the "Company") is pleased to
announce that it has completed the acquisition of 100% of Botswana-
incorporated Crocus-Serv (Pty) Ltd ("Crocus") (the "Acquisition"),
having satisfied the Conditions Precedent in terms of the Heads of
Agreement ("HoA") (as announced 7 May 2020 -RNS number 3266M).
Crocus's assets include 21 exploration prospecting licences (PLs)
of which 19 are in the highly prospective Kalahari Copper Belt
(KCB) and 2 are in the Limpopo Mobile Belt (LMB) in the western and
north eastern Botswana respectively. The PLs cover a total 14,875
square kilometres
In terms of the HoA, the Company has issued as consideration a
total 38,814,246 new Galileo ordinary shares of 0. 1p at 0.42p each
to Crocus (the Consideration Shares) and will make a cash payment
of GBP10,828 (Vendor Cash Consideration). The Consideration Shares
are subject to Orderly Market arrangements as set out in the 7 May
announcement. The Company has applied for the Consideration Shares
to be admitted to trading, expected on or around 28 May 2020 on
AIM.
Furthermore, the Company confirms that it has also issued a
total of 26,505,000 fully paid ordinary shares in the Company (the
"New Ordinary Shares") pursuant to the exercise of warrants in
terms of the Placing Agreement dated 17 October 2019 (RNS announced
18 October 2019). Application will be made for admission of the
above Consideration and New Ordinary Shares (collectively "New
Shares") to trading on AIM ("Admission"), with Admission expected
to occur on around 28 May 2020.
Following the issue of the above Consideration Shares and New
Shares, which rank pari passu to the existing ordinary shares in
the Company, the Company has 623,131,193 ordinary shares in issue,
all of which have voting rights. Shareholders in the Company may
use this figure as the denominator for the calculation, by which
they would determine if they are required to notify their interest
in, or a change to their interest in, the share capital of the
Company under the Financial Conduct Authority's Disclosure and
Transparency Rules.
Colin Bird CEO said:" We are pleased to have completed this
acquisition of Crocus with its copper- licences in the highly
prospective Kalahari Copper Belt and nickel-copper-platinum group
metal licences in the Limpopo Mobile belt in Botswana. The Galileo
team look forward to commencing exploration on the properties with
the complementary benefit of Crocus's in-country experience in
technical and regulatory administrative matters" .
Acquisition Prospectivity
In the Kalahari Copper Belt ('KCB'), the Agreement covers 19
prospecting licences ('PLs') extending over 14,564km(2) located
approximately 500km to the northwest of Gaborone, the capital of
Botswana. The KCB extends for over 800km of strike and contains
multiple recent copper-silver discoveries, which are generally
stratabound and hosted in metasedimentary rocks. The geological
setting is comparable to that of the Central African Copper Belt
and the Kupferschiefer in Poland.
Among recent discoveries in the KCB are Cupric Canyon Capital's
('Cupric') Khoemacau-Boseto Project (91.7 million tonnes @ 2.13% Cu
and 21.9g/t Ag) which is currently being prepared for development,
Sandfire Resources ('Sandfire') T3 deposit (36.0 Mt @ 1.14% Cu
& 12.8g/t Ag), where an optimised feasibility study is in
progress and their A4 Dome prospect where a recent drill intercept
of 18m at 5.2% Cu and 124g/t Ag was reported. Further discoveries
have been made across the border in Namibia.
The deposits in the belt are generally blanketed by Kalahari
sands, ranging from 2-60m in thicknesses which have kept them
hidden from discovery until recent times.
PL's included in the Galileo package are interpreted to cover a
strike length of more than 200km of favourable geology with
multiple targets. Some of the PLs previously formed part of the MOD
Resources (now Sandfire) and Cupric's landholding and therefore
have had limited historical exploration. The remainder of the
ground represents more-or-less blue-sky exploration territory
within the belt.
Several of the PLs lie within 15km of Sandfire's T3 deposit and
A4 Dome (Tshukudu) discovery, as well as Cupric's Banana Zone
(155Mt @ 0.9% Cu, 11g/t Ag) and the Mahumo deposit (2.7Mt @ 2.0%
Cu, 50g/t Ag).
Galileo plans to review the limited historic exploration
information and to focus on the base of the prospective Proterozoic
D'Kar Formation in fold hinge settings. Follow-up is envisaged to
encompass acquisition of available airborne magnetic data, ground
geophysical surveying, including detailed magnetics and EM, along
with soil geochemistry, with initial targeting close to known
copper-silver discoveries.
The Limpopo Mobile Belt ('LMB') project comprises 2 PLs covering
311km(2) on land located about 400km northeast of Gaborone, near
the border with Zimbabwe, viz. PL048/2018 (Sampowane) and
PL049/2018.
The LMB is a wide zone of continental collision traversing parts
of Botswana, Zimbabwe and South Africa. The Galileo licences are
located along the northern margin of the LMB within Botswana. The
underlying geology comprises a sheared package of metamorphic
gneisses of Archaean age enclosing mafic-ultramafic intrusive
rocks. These intrusives are prospective primarily for nickel and
copper massive sulphides.
Along this section of the LMB, Botswana Metals Ltd. ('Botswana
Metals') operated the major Selebi Phikwe Ni-Cu mine, with reported
original resources of 150Mt @ 1% Ni, 0.9% Cu. In addition, several
smaller deposits have been discovered and are currently being
explored along this sector of the LMB, some of which also contain
significant concentrations of platinum group elements.
The Sampowane licence is located only 15km from the Selebi
Phikwe mine. Historic exploration on the property comprised mainly
EM (electro-magnetic) geophysics and limited RC/diamond drilling by
Falconbridge and Botswana Metals. This defined an EM target that
extends for over 1km. Several drill holes along this target are
reported to have intersected a narrow zone of Ni-Cu mineralisation,
with the best drill intercept assaying 0.47% Ni, 0.20% Cu, 0.43g/t
Pd over 4.0m. A number of further mafic/ultramafic occurrences on
the property returned anomalous copper values from grab samples but
these have not yet been tested.
PL049/2018 lies further to the east within an area where many
Ni-Cu prospects have been discovered, several immediately adjacent
to the property. Extensive historic exploration over the district,
most recently by Botswana Metals, highlighted a series of EM
conductors along a 40km trend aligned east-northeast. Several of
these conductors were followed up with drilling, which located
Ni-Cu-PGE deposits at a number of localities, including some very
proximal close to PL049. The Maibele North project, which lies less
than 1km to the north of PL049/2018, hosts a(JORC 2012) Resource of
2.38 million tonnes at 0.72% nickel, 0.21% copper and 0.63g/t
PGE's, plus gold, with potential for further extensions. In
addition, the Dibete Prospect, which is surrounded by the PL049,
was extensively drilled by Botswana Metals with intercepts up to
11m @ 4.5% Cu, 229g/t Ag and 17m @ 2.7% Cu, 41g/t Ag reported from
cross-cutting structures.
No drilling is known on PL049but EM images show similar
conductive features tracking through the licence which are untested
and can have potential for massive sulphide mineralisation. These
will be priority targets for follow-up by Galileo, utilising
geological mapping/prospecting, soil geochemistry, ground
geophysical surveying and drilling.
Technical Sign-Off
Andrew Sarosi, Technical Director of Galileo, holds a B.Sc.
Metallurgy and M.Sc. Engineering, University of Witwatersrand and
is a member of The Institute of Materials, Minerals and Mining. He
is a 'qualified person' as defined under the AIM Rules for
Companies and a competent person under the reporting standards. The
technical parts of this announcement have been prepared under
Andrew Sarosi's supervision and he has approved the release of 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
Andrew Sarosi, Executive Director 4477
Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Tel +44 (0) 20 7628
Roland Cornish/James Biddle 3396
--------------------------
Novum Securities Limited - Joint
Broker
Colin Rowbury /Jon Belliss +44 (0) 20 7399 9400
--------------------------
Shard Capital Partners LLP - Tel +44 (0) 20 7186
J oint Broker 9952
Damon Heath
--------------------------
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END
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