Galileo Resources PLC Sale of Gabbs Gold-Copper Property for US$ 2 mill (3573I)
August 30 2016 - 1:00AM
UK Regulatory
TIDMGLR
RNS Number : 3573I
Galileo Resources PLC
30 August 2016
For immediate release
30 August 2016
Galileo Resources Plc
("Galileo" or "the Company")
Sale of Gabbs Gold-Copper Property in Nevada USA and new Ferber
claims acquired
Highlights
-- Sold Gabbs property in Nevada for USD 2.5 million (GBP1.9 million) in cash.
-- 210 claims added to the Company's highly prospective Nevada Ferber property
-- Funds will allow aggressive exploration of the South African Concordia Copper project
-- Gabbs sale removes requirement for capital raising and
consequent share dilution in mid-term.
Colin Bird Chairman and CEO said: "The Gabbs sale allows us to
focus on the Concordia copper project in South Africa, where the
management has gained most of its success and experience. The cash
received will cover our short-to-medium-term working capital. The
Board agreed to the sale based on its strategy to focus on copper
and particularly in Southern Africa."
Galileo (AIM: GLR), the exploration and development mining
company, and its wholly owned subsidiary St. Vincent Minerals US
Inc (SVMUS) are pleased to announce the execution of, and closing
under, an Asset Purchase Agreement (the "Agreement") with a
subsidiary of Waterton Precious Metals Fund II Cayman, LP
(Waterton). Under the terms of the Agreement, Waterton has
purchased the Company's advanced Gabbs gold-copper property in
Nevada for a consideration of US$2.5 million cash. The reason
behind the sale, amongst other things, is the Company's strategic
decision to reduce exposure to gold exploration and focus instead
on exploration and funding on its Concordia copper project in
Namaqualand, Northern Cape Province in South Africa. The Company
retains its greenfield Ferber copper-gold and Crow Springs gold
properties in Nevada, for which the Company continues to seek
JV/farm-out partners or sale and as announced 27 June 2016, it is
in a farm-out JV with Orogen Gold Resources plc on its Silverton
gold property also in Nevada. The Company announces further that it
has added another 210 claims surrounding Ferber, following the
quitclaim of these claims by a major mining company.
Information on Gabbs
In 2014, the Company acquired St Vincent Minerals US Inc.'s
portfolio of Nevada properties, which included the Gabbs property,
through acquisition of its Canadian parent company, St Vincent
Minerals Inc., for CDN$4.3 million, by way of a share exchange. No
values were ascribed to the individual properties comprising the
portfolio at acquisition. Since acquisition, the Company has spent
GBP53,000 on Gabbs for Bureau of Land Management and Nevada County
claims renewal fees.
Further details are available from the Company's website which
details the Company's project portfolio as well as a copy of this
announcement: www.galileoresources.com
ENDS
You can also follow Galileo on Twitter: @GalileoResource
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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