Business
Silverton Project Farm-Out
Silverton Project Farm-Out.
About this update from Galileo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 9542V Galileo Resources PLC 21 April 2016 \n\n \n \n \n \nFor immediate release: 14.00\n \n21 April 2016\nGalileo Resources Plc\n(\"Galileo\" or \"the Company\")\n \n \nGALILEO EXECUTES EXCLUSIVE AGREEMENT FOR FARM-OUT OF THE COMPANY'S SILVERTON GOLD PROPERTY IN NEVADA USA \n \nGalileo is pleased to announce that it has executed a binding and exclusive term sheet (\"Exclusive Agreement\") with Orogen Gold plc, (\"Orogen\"), pursuant to which Orogen will have the right to earn-in a 51% interest in the Company's Silverton Gold Silver property (\"Silverton\" or the \"Property\") in Nevada, USA, by way of exploration expenditure of US$400,000 (the \"First Expenditure\") within 18 months on the Property and thereafter the possibility to spend an additional US$1,500,000 (the \"Second Expenditure\") within 30 months to earn-in a further 24% interest in the Property (the \"Farm-out\"). \n \nThe Company will have the right to participate pro rata after the First Expenditure; should it exercise this right it would retain a 49% equity interest in Silverton (as opposed to being diluted down to 25%). The Exclusive Agreement is subject to due diligence, which is anticipated to be completed, within 45 days of signing, including formalisation of the Exclusive Agreement. \n \nShareholders are advised that Colin Bird is an executive director of both Galileo and Orogen, in which he holds respectively 24.81% and 1.82% of their issued ordinary share capital. In accordance with the requirements of Sections 171 to 177 of the Companies Act 2006, he has abstained from negotiations and the decision making process of the Galileo Board in regard to the Farm-Out and will continue to do so in order to manage any future potential for a conflict of interest in the Property. \n \nHighlights\n \n· Galileo has granted Orogen the right to earn an initial 51% interest in the Silverton project over the 6km² claim area through exploration spend of US$400,000 over 18 months\n· Orogen may earn an additional 24% interest in the project through a further exploration spend of US$1.5 million over a subsequent 30 month period\n· Previous bedrock and drill sampling outlined an area >0.5g/t Au measuring 1km ...