TIDMGLR
RNS Number : 2943K
Galileo Resources PLC
06 July 2017
6 July 2017
Galileo Resources Plc
("Galileo" or "the Company")
Glenover Phosphate - Term Sheet to Advance Project
Galileo (AIM: GLR) is pleased to announce that, further to its
announcement of 12 June 2017, it has executed a term sheet with its
JV partner Fer-Min-Ore Proprietary Limited ("FMO"), in the Glenover
Phosphate/Rare earth project (the "Glenover Project" or "Project"),
to advance the Project to a stage where it obtains a mining right
("MRA") from the Department of Mineral Resources ("DMR") to mine
and produce phosphate ( the "Term Sheet").
One of the terms in the Term Sheet, amongst other, includes
Galileo funding the execution of the mining right application
("MRA") by way of a loan, convertible to 4% of the equity in
Glenover Phosphate Proprietary Limited ("Glenover"). The Company
has engaged a consulting group to execute the MRA.
Term Sheet Highlights
-- Galileo signs Term Sheet with JV partner to advance the
Glenover Project to a MRA with the DMR
-- Galileo to fund the application for a MRA by way of a convertible loan ("Loan")
-- The Loan will be convertible to 4% new equity in Glenover: 2%
on acceptance of the MRA by the DMR and 2% on formal grant of the
Mining Right by the DMR
-- Galileo's equity in Glenover may accordingly increase to 38% from 34%
-- Post conversion of the Loan, the black economic empowerment
shareholding in Glenover will be adjusted to comply with the
amended Mining Charter of South Africa and the remaining
shareholders will dilute accordingly
-- Existing Project shareholder loans will be written down:
Galileo's loan (ZAR1.9M) will be netted off against FMO's loan (ZAR
10.6M) and FMO's remaining agreed outstanding loan will be
ZAR4M
-- Term Sheet is valid for 24 months or until formal grant of Mining Right
-- Galileo has engaged South African based Minxcon Limited to execute the MRA
-- The funding will also include a monthly payment ZAR35,000
(GBP2,058 ) into Glenover's account to support the funding of the
management of the Glenover Project
Colin Bird, CEO, commented: "The mining right will provide
optionality to Glenover to pursue best route for development of the
Project. We are currently testing various scenarios for development
and will keep shareholders advised."
Glenover Project
The Project is located approximately 90 km northwest of the town
of Thabazimbi in the Waterberg region of Limpopo Province in the
Republic of South Africa. The Project comprises an inactive
phosphate mine comprising a SAMREC compliant 10.37 million tonnes
(Mt) grading 18.73% phosphate (P(2) O(5) ) including an inferred
2.685 Mt surface stockpiles of phosphate ore grading 22.21 %P(2)
O(5) and a measured and indicated 7.4 Mt grading 17.51 %P(2) O(5)
in an apatite (phosphate mineral)- breccia core remaining in the
previously mined open pit. The open pit is approximately 100 metres
deep with a surface width of approximately 200 metres.
Glenover Phosphate Resource (SAMREC compliant) (1)
Resource Resource Tonnage P(2) O(5)
Class Mt (%)
--------------------------- ------------------------------- -------- ----------
Apatite-Haematite Breccia Measured
---------------------------
Indicated 7.407 17.57
----------------------------------------------------------- -------- ----------
Total Measured & Indicated 7.407 17.57
----------------------------------------------------------- -------- ----------
Inferred 0.274 15.83
----------------------------------------------------------- -------- ----------
Surface Stockpiles Inferred 2.685 22.21
--------------------------- ------------------------------- -------- ----------
Total Measured indicated & inferred 10.37 18.73
--------------------------- ------------------------------- -------- ----------
(1) Data contained in the Preliminary Economic Assessment (PEA)
referred to in RNS announcement of 07 March 2013 "Results of
Glenover PEA"
Further details as set out in past announcements are available
from the Company's website, www.galileoresources.com, which details
the Company's project portfolio as well as a copy of this
announcement:
You can also follow Galileo on Twitter: @GalileoResource
Technical Sign-Off
Andrew Sarosi, Director of Galileo, who holds a B.Sc. Metallurgy
and M.Sc. Engineering, University of Witwatersrand and is a member
of the Institute of Materials, Minerals and Mining, is a "qualified
person" as defined under the AIM Rules for Companies and a
competent person under the reporting standards. The technical parts
of this announcement have been prepared under Andrew's supervision
and he has approved the release of this announcement.
ENDS
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Galileo Resources PLC Tel +44 (0) 20 7581 4477
Colin Bird, Chairman
Andrew Sarosi, Executive Tel +44 (0) 1752 221937
Director
Beaumont Cornish Limited Tel +44 (0) 20 7628 3396
- Nomad
Roland Cornish/James Biddle
Beaufort Securities Limited - Broker Tel +44 (0) 20 7382 8416
Jon Belliss
Technical Glossary:
Inferred Mineral Resource: that part of a Mineral Resource for
which volume or tonnage, grade and mineral content can be estimated
with only a low level of confidence. It is inferred from geological
evidence and sampling and assumed but not verified geologically or
through analysis of grade continuity. It is based on information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that may be
limited in scope or of uncertain quality and
reliability.
Indicated Mineral Resource: that part of a Mineral Resource, for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable level of
confidence. It is based on information from exploration, sampling
and testing of material gathered from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are too
widely or inappropriately spaced to confirm geological or grade
continuity but are spaced closely enough for continuity to be
assumed.
Measured Mineral Resource: that part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level of
confidence. It is based on detailed and reliable information from
exploration, sampling and testing of material from locations such
as outcrops, trenches, pits, workings and drill holes. The
locations are spaced closely enough to confirm geological and grade
continuity.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDRFMRTMBAMMBR
(END) Dow Jones Newswires
July 06, 2017 03:54 ET (07:54 GMT)
Galileo Resources (LSE:GLR)
Historical Stock Chart
From Apr 2024 to May 2024
Galileo Resources (LSE:GLR)
Historical Stock Chart
From May 2023 to May 2024