Business
Investment in Star Zinc Project and Placing
Investment in Star Zinc Project and Placing.
About this update from Galileo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4837P Galileo Resources PLC 31 August 2017 \n\n \n \n \nFor immediate release \n \n 31 August 2017\nGalileo Resources Plc\n(\"Galileo\" or \"the Company\")\n \nAcquisition of Interest in Zambian Star Zinc Project \nPlacing & Issue of Equity\n \nGalileo is pleased to announce that on 31 August 2017 the Company entered into a binding term sheet (\"Term Sheet\") with BMR Group plc (\"BMR\") whereby it has agreed conditionally, to advance to BMR, $591,600 (at an interest rate of 12% per annum) , which is intended to be used for the purpose of completing the exercise of an option to acquire the Star Zinc project in Zambia (\"Zinc Project\") through a joint venture (the \"Joint Venture\") to be established with BMR. The Term Sheet stipulates that Galileo will subscribe for a 51% equity stake in the Joint Venture through a newly created special purpose vehicle, to be named Enviro Mining Limited, which will be financed by the cancellation of the aforementioned $591,600 loan.\n \nColin Bird Chairman and CEO of Galileo commented: \"This joint venture with BMR on the Star Zinc property gives us a position in the very promising Star Zinc resource close to Lusaka, Zambia. The availability of primary Zinc deposits is diminishing and Star Zinc is open ended in both directions and depth with the strong possibility of other similar occurrences within the concession boundaries. Our first step will be to confirm the current non JORC resource, followed by trenching and sampling of other areas and thereafter drilling.\"\n \nThe Company also announces that the Company's broker, Beaufort Securities, has today completed a placing of 54,672,500 new ordinary shares (\"Placing Shares\") of 0.1p each (the \"Ordinary Shares\") at a placing price of 2.0p (the \"Placing Price\") per Placing Share to raise £1,093,450 before expenses (the \"Placing\"), subject to admission to trading on AIM.\n \nIn addition to its acquisition of interest in the Zinc Project, the Company intends to use the proceeds of the Placing and the Director's Subscription to fund, amongst other things, follow-up exploration & drilling on its gold property in Nevada USA, advancing the Company's Glenover Phosphate project in South Africa, including funding its mining right application &a...