Galileo to sell two Botswana licenses to Sandfire's Metal Capital
Galileo Resources PLC shares jumped on Friday after it confirmed it would proceed with the sale of its two prospecting licenses in the Kalahari copper belt to Metal Capital Exploration Ltd, owned by Sandfire Resources Ltd.
Galileo is a copper, gold and lithium mine developer focused on Zambia, Zimbabwe and Botswana. Shares in Galileo rose 12% to 0.78 pence on Friday afternoon in London.
Galileo said all previously agreed conditions have been met and that it expects to complete the sale around September 30.
The conditions included consent by the Botswanan Ministry of Minerals & Energy, any necessary approval from the Consumer & Competition Authority and any regulatory approval from the Australian Securities Exchange and the Alternative Investment Market. Sandfire Resources, which is acting as a purchaser guarantor in the transaction, is listed on ASX.
In June, Galileo entered a conditional share purchase agreement with Metal Capital to sell its wholly owned subsidiary, Virgo Business Solutions (Pty) Ltd.
Virgo owns two prospecting licences, PL039/2018 and PL040/2018, in Botswana in the Kalahari copper belt.
The deal involved an upfront payment of USD3 million and a potential one-off success payment of between USD20 million to USD80 million.
Success payments are subject to meeting nominated thresholds for contained copper in a first qualifying ore reserve under the terms of the agreement. Metal Capital made an exploration commitment of USD4.5 million on the prospecting licences within three years of completion.
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