Galileo Resources not sitting on hands after active half-year
The exploration and development company, which in the pre-revenue stage, had £1.05mln of cash in the bank at the end of the six months to end-September 2020, having raised £900,000 before expenses in June.
In the period the company made a £366,945 loss compared to £193,484 a year earlier.
During the period, Galileo spent £163,000 mostly in shares to acquire 21 copper and nickel-platinum group elements exploration prospecting licences in the highly prospective Kalahari Copper Belt in western Botswana and the Limpopo Mobile Belt in the east.
Since the period ended, Galileo has remained busy, undertaking geophysical surveying over several licences in the Kalahari Copper Belt project that turned up several highly prospective geological settings for copper-silver mineralisation. The most prospective targets will be selected for early drill testing.
Five more prospecting licences were also snapped up in the North East Kalahari Copper Belt. These licences include the Quirinus copper-silver prospect where much of a series of copper-in-soil anomalies extending for 13.4km are untested.
Not sitting on its hands, Galileo this week signed agreements with Sandfire Resources (ASX:SFR) to sell nine of its Kalahari Copper Belt licences for US$3mln, half in cash and half in shares of the ASK-listed company, plus contingent future ‘success payment’ of US$10mln-80mln subject to future ore reserve volumes being unearthed across the acreage.
Sandfire, which is building the T3 copper-silver mine nearby, committing to spend US$4mln on the licences within two years and has first refusal rights over another 15 Kalahari Copper Belt licences that are retained by Galileo.
Looking forward, Galileo said a decision is due in the next couple of months from the South African government over a proposed Tailings Storage Facility design at its Glenover phosphate project.