Business
Glenover Assets Sale and Option to sell shares
Glenover Assets Sale and Option to sell shares.
About this update from Galileo Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0426V\n Galileo Resources PLC\n 09 December 2021\n \n \n \n \n \n \n \n For immediate release \n \n \n \n \n \n 9 December 2021\n \n \n Galileo Resources Plc\n \n \n (\"Galileo\" or \"the Company\")\n \n \n \n \n \n Glenover Assets Sale and \n \n \n Option to sell shares in Glenover\n \n \n \n \n \n Galileo Resources plc (\"Galileo \"or the \"Company\") is pleased to provide details regarding;\n \n \n \n \n \n a. Asset sale agreements entered into between Glenover Phosphate Proprietary Limited (\"Glenover\") in which Galileo has a 29% direct and 4.99% indirect investment held via Galagen Proprietary Limited who are the BEE partner in Glenover, and JSE Limited listed Afrimat Limited (JSE : AFT) (\"Afrimat\") on 8 December 2021 (the \"Asset Sale Agreement\"). The Asset Sale Agreements relate to the sale for ZAR 250M (approx. GBP11.64M) of certain deposits of phosphate rock located at the Glenover Mine (\"Inventory Deposits\") (\"Glenover Unconditional Asset Sale\") and mining rights to mine the Vermiculite Deposit at the Glenover Mine (\"Vermiculite Mining Rights\") (\"Glenover Conditional Asset Sale\"). \n \n \n \n \n \n b. A conditional sale of shares agreement between Afrimat, Glenover and the shareholders of Glenover under which Glenover has the option (the \"Afrimat Option\") to acquire the sale of shares in and shareholders loans made to Glenover for ZAR300M ( approx. GBP14M ) (the \"Sale of Shares Agreement\") which is expected to complete by 15 June 2023 if the option is exercised. \n \n \n \n \n \n The agreements hereinafter being referred to as the (\"Glenover Agreements\"). \n \n \n \n \n \n \n Colin Bird Chairman & CEO said:\n \n \n \n \n \"Galileo originally invested in Glenover in 2012 and this agreement is testament to the hard work of the Glenover management, our local shareholder Ferminore Proprietary Limited, and BEE partner Galagen. The Acquirer Afrimat, is a well respected South African mining group, who have carried out extensive critical testwork and due diligence, before proposing this acquisition. We wish them well with this.\n \n The succesfull completion of this transaction is a good example of how local South African groups can successfully work with an experience...