Share Purchase Agreement re Acquisition of 100% of
Africibum Co Pty Ltd’s interest in its North East Kalahari Copper Belt project, Botswana
Galileo (AIM:GLR), the exploration and development mining company, is pleased to announce the conditional acquisition of 100% of Africibum Co Pty Ltd and its interests in the North East Kalahari Copper Belt project in Botswana.
· Galileo ground position in Kalahari Copper Belt extended to include Quirinus copper-silver prospect with historic shallow drill intercepts
· Three-hole RC drilling programme by previous explorer all intersected mineralisation along 600m soil anomaly, including 4m @ 1.7% Cu, 13g/t Ag and 6m @ 0.9% Cu, 14g/t Ag
· Copper-in-soil anomalies extend for 13.4km in total, much of it untested
· Tenement lies within 15km of major copper-silver discoveries, part of Cupric Canyon Capital’s Khoemacau Project
· Other licences are little explored but believed to be partly underlain by the target host rocks
Colin Bird, Executive Chairman and CEO of Galileo, commented:
“I am very pleased that we have been able to conditionally acquire these licences, which are in an area of high prospectivity in the Kalahari Copper Belt. They are part of the Boseto Copper Project surrounds being 15km from the processing area.
The target areas have already been reconnaissance drilled and copper intercepts have been received. The area known prospectivity is some 14km in length and other areas require geophysics and geochemical work before prospectivity establishment.
The proposed Acquisition of this target completes the Company’s Kalahari Copper Belt portfolio and we look forward to exploration in our expanded footprint in the Kalahari Copper Belt which is part of the Northwest Botswana Rift which the USGS in 2015 reported as the world’s most prospective area for yet-to-be discovered sediment hosted copper deposits
North East Kalahari Copper Belt Project Acquisition: The Company has entered into a conditional Share Purchase Agreement dated 14 September 2020 to acquire 100% of Africibum Co (Pty) Ltd, incorporated in Botswana (Company number 1828747) (“Africibum”) and its interest in five mining tenements PL366/2018, PL367/2018, PL368/2018, PL122/2020, PL123/2020 and two mining tenement applications in Botswana (the “North East Kalahari Copper Belt Project”) (the “Acquisition Agreement”). The consideration payable by Galileo at Completion of the Acquisition Agreement is a total of a) 42,000,000 fully paid ordinary shares in the Company at a price of 0.779 pence per ordinary share (“Galileo Shares”) comprising i) 35,000,000 Galileo Shares to be issued to Africibum’s ordinary shareholders (the “Sellers”) (“Ordinary Share Consideration”), and ii) 7,000,000 Galileo Shares to be issued to one of the Sellers in relation to the reimbursement of costs incurred by Africibum to date (“Reimbursement Share Consideration”) at the same price ;and b) 10,000,000 warrants, with an expiry date two years from the Completion Date of the Acquisition, to acquire Galileo Shares at an exercise price of 2 pence per share which is a an approximate 150 % premium to 0.785 pence being the mid-market closing share price of Galileo Shares on 14 September 2020 (“Warrant Consideration”). The Acquisition Agreement is subject to various Conditions Precedent detailed below being satisfied within a 30 day period and includes completion of satisfactory due diligence by Galileo and Galileo and Africibum obtaining necessary regulatory approvals or waivers and shareholders approvals pursuant to the AIM Rules or any other laws or statute.
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