REG - Galileo Resources - Half-year Report
28/12/2023 15:30
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RNS Number : 1089Y Galileo Resources PLC 28 December 2023
28 December 2023
Galileo Resources PLC
("Galileo" or "the Company" or "the Group")
Unaudited interim results for the six months ended 30 September 2023
Galileo (AIM: GLR), the exploration and development mining company, announces
its unaudited interim results for the six-month period ended 30 September
2023. A copy of the interim results is available on the Company's website,
www.galileoresources.com (http://www.galileoresources.com) .
Operational Highlights
ZAMBIA
Luansobe Copper Project
The Company holds a 75% interest in the Luansobe project.
The Luansobe area is situated some 15km to the northwest of Mufulira Mine in
the Zambian Copperbelt which produced well over 9Mt of copper metal during its
operation. It forms part of the north-western limb of the northwest -
southeast trending Mufulira syncline and is essentially a strike continuation
of Mufulira, with copper mineralisation hosted in the same stratigraphic
horizons. At the Luansobe prospect mineralisation occurs in at least two
horizons, dipping at 20-30 degrees to the northeast, over a strike length of
about 3km and to a vertical depth of at least 1,250m.
Period Under Review
On the 9(th of) February 2023 the Company announced a new Inferred Mineral
Resource for the project estimated by external consultants Addison Mining
Services and inclusive of:
- Approximately 5.8 million tonnes gross at 1% total Cu above a
cut-off grade of 0.25% total Cu for 56,000 tonnes of contained Cu, potentially
amenable to open pit mining.
- Approximately 6.3 million tonnes gross at 1.5% total Cu above a
cut-off grade of 1% total Cu for 97,000 tonnes of contained Cu, potentially
amenable to underground mining.
Since then, work has continued towards development of a potential open pit
mine plan and associated works.
Shinganda Copper-Gold Project
On the 27 June 2023 the Company exercised its option to enter a joint venture
and acquire an initial 51% interest in the Shinganda Copper-Gold project,
Zambia, following the expenditure of over US$500,000 in direct exploration
costs.
The project area covers part of a major 10km structural trend with two
previously developed small-scale open pit copper-gold mines. Very limited
historic drilling on the property is reported to have intersected 1.07% Cu
over a true width of 28.3m at shallow depth within supergene copper oxides.
Drilling on the structure within the Shinganda property further to the west by
Vale S.A. recorded a 2m interval @ 3.93% Cu, 1.72g/t Au.
Period Under Review
A licence-wide review and re-interpretation of previously available
geophysical data, combined with the company's own geophysical surveys, soil
sampling and prospecting unlocked a new structural framework for the licence
and delineated new targets for immediate follow-up drill testing, a number of
which are prospective for deposits of copper and gold mineralisation
associated with Iron Oxide Copper Gold (IOCG) deposits.
Conclusions of the study included;
- Three large clusters of intense iron alteration towards the West,
identified in the high-resolution aeromagnetics, where historical drilling
returned hematite, magnetite and lesser pyrite mineralisation that was not
assayed. The clusters also host several coincident historical IP-chargeability
anomalies, which have been insufficiently drill-tested.
- Identification of a high-order splay fault at the Shinganda
Copper-Gold prospect in the aeromagnetic data that is the probable primary
control of the copper-gold mineralisation
- Co-incident copper-in-soil anomalies with >285ppm Cu occurring
both along the Shinganda Splay Fault and at Iron Alteration Cluster A, which
are prospective for IOCG mineralisation.
- Limited historical drilling and sampling at Shinganda returned best
intercepts of up to 50.3m @ 1.54% Cu from 21m downhole depth in drill hole
SHDD002, and a peak of 33.90g/t Au was returned from a composite grab sample
in an exploration pit.
Post Period Under Review
A follow-up drill programme with up to 2,000m of planned drilling commenced in
late 2023 to test multiple shallow copper-gold targets along, and parallel to,
the Shinganda Splay Fault and to test the IOCG deposit potential related to
the iron alteration clusters and IP targets highlighted by the geophysical
study.
As announced on the 7 November 2023 seven holes had so far been completed for
a total of 890m of drilling, including positive intersections received in the
most recent drill hole SHDD017. The drill hole, SHDD017, which is located less
than 1km along strike from the Shinganda copper-gold prospect drilled in the
previous reporting period, intersected an extensive interval of alteration and
brecciation with associated copper mineralisation over a 264.5m interval from
a downhole depth of 65.5m within the Shinganda Splay Fault system.
Mineralisation generally occurs as clusters and disseminations associated with
brecciation and quartz-carbonate veining and has been confirmed by pXRF
analysis, with follow-up laboratory assay results awaited.
Several follow-up holes are planned through the wide mineralised zone, as well
as further drilling to test the iron alteration clusters and IP targets
highlighted by a previous geophysical study.
Anomalous copper has been detected via pXRF analysis in shallow oxide
mineralisation intersected in a number of shallow holes designed to test
outcropping supergene gossan occurrences. Split core samples have been
submitted for multi-element laboratory analysis, including copper and gold.
Kashitu
Period under review
A new small-scale exploration licence was issued on 23 February 2022 covering
the core of the Kashitu project area. The licence will run for four years from
the issue date.
The Company has held meetings with the majority of interested and affected
parties associated with the deposit including small-scale and artisanal
miners, nearby residents, and potential providers of third-party processing
capacity specifically to find the most appropriate way to develop the resource
and more specifically mine and process the balance of the open pittable
high-grade willemite. The Company recognises that wholesale removal of access
to parts of the Kashitu licence for small-scale and artisanal miners could
have a profound impact on livelihoods hence the proposal to enter into an
arrangement that benefits all parties. Navigating the expectations of the
various parties is challenging and the Company's representatives will continue
to build a business plan. Once priority locations have been identified,
further shallow drilling on a close-spaced grid for grade control purposes
will take place.
NW Zambia Joint Venture
On 05 September 2023 the Company announced that it had entered into a joint
venture agreement with Cooperlemon Consultancy Limited in relation to the
exploration for copper at large scale exploration license 28001-HQ-LEL in
Northwest Zambia.
The exploration licence covering 52,000 hectares runs along the
Angolan-Zambian border and is closely associated with the perceived Western
Foreland geological district boundary that potentially hosts Kamoa - Kakula
deposits in Northwest Zambia. Historically there has been limited exploration
over the licence area and initial work by Galileo has focused on
interpretation of available data including information generated by other
explorers and available in the public domain. Licence acquisition coincided
with the start of the Rain Season and as a result, mobilisation on the ground
and detailed fieldwork will commence once the weather improves and easy access
is possible.
.
Under the joint venture agreement ("JV Agreement"), Galileo agreed the
following key terms:
Earn-in and Phase 1 exploration budget: Galileo will earn a 65% interest in
the joint venture by:
i) An immediate cash payment of US$230,000 to Cooperlemon;
ii) Funding exploration expenditure over an initial
eighteen-month period ("Phase 1") on the Licence of not less than US$750,000.
Exploration is expected to commence in September / October 2023, and will
comprise both physical activity within the Licence boundaries (including but
not limited to mapping, soil geochemistry, geophysics and drilling), and
desktop studies, laboratory analysis and interpretation of data and results.
Galileo anticipates funding this exploration expenditure from existing
resources; and
iii) For the issue of 2,500,000 Galileo Resources plc shares
(the "Consideration Shares") at a price of 1.175 pence per share being the
closing Galileo share price on 4 September 2023 (totalling £29,375). The
Consideration Shares are subject to a three month lock up arrangement and
thereafter a further three months orderly market arrangement. Under the
orderly market arrangement, the Consideration Shares can be sold via the
Company's broker at a price determined by the vendor (the "Nominated Sale
Price") which shall not be less than the lower of i) the 10 day VWAP and ii)
the closing bid price on the day before the fixing of the Nominated Sale Price
and the Company's broker will have 10 business days to sell the shares at the
Nominated Sale Price.
If the Phase 1 exploration results are successful and prove the continuity of
mineralisation at grades suggesting the potential for the future development
of a Mineral Resource of not less than 500,000 tonnes of contained copper,
consistent with economic recovery at the depth of discovery with a minimum
internal rate of return of not less than 25% and a payback period not
exceeding 42 months (including the recovery of capital expenditure), then
there will be a second two year exploration period ("Phase 2").
ZIMBABWE
Galileo announced an agreement entered into on 04 March 2022 which assigned to
Galileo an option granted under an agreement dated 21 January 2022 between BC
Ventures and Cordoba Investments Limited to acquire a 51% interest in BC
Ventures. BC Ventures is the owner of a highly prospective lithium project in
western Zimbabwe (the Kamativi Lithium Project) and two gold licences (the
Bulawayo Gold Project) close to Bulawayo through its wholly owned Zimbabwe
subsidiary Sinamatella Investments (Private) Limited. Under the terms of the
agreement the Company committed to spend US$1.5 million on exploration
expenditure by 21 January 2024.
On 10 August 2022, the Company further announced an agreement to acquire a
further 29% shareholding in the Sinamatella projects and an extension on the
commitment to spend US$1.5 million on exploration expenditure by 6 months to
21 July 2024. Post the financial period under review the Company announced
that all conditions had been met in relation to the agreement to acquire a 29%
shareholding in BC Ventures Limited (the "Share Acquisition") accordingly, the
Company issued 50,000,000 Galileo ordinary shares at a price of 1.2 pence per
share being the consideration shares due in relation to the Share Acquisition.
As a result, Galileo now has an interest of 29% in BC Ventures alongside an
option to acquire a further 51% interest through the Company spending
$1.5million on exploration and evaluation of the Projects by 21 July 2024.
Zimbabwe is recognised as one of the most potentially prospective countries in
Africa for pegmatite-hosted lithium. Among other explorers, Prospect Resources
Ltd (ASX: PSC) estimates that its Arcadia open pit lithium deposit, hosted
within a stacked series of pegmatite dykes, contains JORC- compliant proven
and probable ore reserves of 37.4Mt, grading at 1.22% Li2O. China's Zhejiang
Huayou Cobalt previously agreed a deal to purchase 100% of the Arcadia
hard-rock lithium project for US$422m. Zimbabwe has also long been a
significant gold producer, primarily from Greenstone Belt quartz 'reef'
deposits that are host to many small to mid-size quartz reef gold mines and
deposits.
Kamativi Lithium Project
The Kamativi Lithium Project comprises EPO 1782, covering 520km2, and lies on
the Kamativi Belt directly adjacent to, and along strike from the historic
Kamativi tin- tantalum mine which operated from 1936 to 1994. The Kamativi
Mine produced 37,000 tonnes of tin and 3,000 tonnes of tantalum ore from
pegmatites, and in 2018 Chimata Gold Corp (Zimbabwe Lithium Company) announced
a new JORC (2012) compliant Indicated Mineral Resource of 26Mt @ 0.58% Li2O
within the Kamativi mine tailings, confirming that the mine contained
significant quantities of lithium. The mine has recently been brought back
into production for hardrock lithium by its current Chinese owners.
The Sinamatella licence area encloses extensions and splays of the Kamativi
Tin Mine host unit, including mapped pegmatites, and it has been reported that
there are old tin-fluorite workings within the Sinamatella property. The
licence area also contains a large extent of the pre-Cambrian Malaputese
Formation which is considered to be strongly prospective for VMS hosted
copper, surrounding the old Gwaii River Copper Mine and including numerous
other copper prospects and occurrences.
Little exploration has been carried out on the licence area in the past 25+
years, however there is very good historical data available to advance
exploration for lithium prospects.
Period Under Review
On 15 June 2023 the company announced that a contract had been signed with a
drilling contractor in order to commence drill testing of a substantial
lithium-in-soil anomaly on the Kamativi licence EPO 1782 adjoining the
historic Kamativi tin-tantalum mine (in which Galileo does not have an
interest) which contains a significant lithium tailings resource.
The Kamativi soil anomaly peaks at over 1,000ppm Li and extends over a strike
length of almost 3km, comparable to the footprint of the Arcadia Lithium
Project near Harare, considered to be one of the world's largest hard rock
lithium resources. A swarm of coincident pegmatite dykes was mapped within the
soil anomaly area covering about 1km x 0.5km which was targeted by the
Company in the first phase of drilling, with approximately 1,000m of drilling
planned in at least 10 holes.
Phase One drilling advanced promptly at Kamativi during the reporting period
and on the 10 August 2023 the company reported the return of strongly
encouraging assay results from the first hole drilled. The drill hole,
KSDD001, returned peak values of 4m @1% Li2O from 35m downhole depth,
including an intercept of 1m at 2.04% Li2O within an 18m wide pegmatite.
Analysis of newly received soil sampling data revealed an extension to the
original anomaly over considerable distance, and with the addition of detailed
mapping, a much larger target area than previously realised was delineated
which allowed for the extension of the drilling programme.
Post Period Under Review
The Company reported the completion of Phase One drilling at Kamativi for
lithium and associated elements on the 17 October 2023, with a total of
1,428.4m drilled in ten drill holes.
Initial results from the remainder of the Phase One drilling programme were
promising, with mineralisation and alteration similar to that reported in the
first drill hole, KSDD001 observed in several subsequent holes. Core logging
and sampling was underway, preparing samples for export to ALS Laboratory in
Johannesburg for lithium and associated element analysis.
Mineralogical examination of samples from KSDD001 carried out at the
University of Zimbabwe has identified prospective spodumene mineralisation in
thin sections - further samples will be subjected to full XRD mineralogical
examination in South Africa.
The Company is also testing the southern part of the licence for VMS-type
copper mineralisation.
A site visit by external recognised lithium exploration experts resulted in a
recommendation for a greater emphasis on detailed geological mapping with
follow up trenching over prospective targets and significantly more emphasis
on petrological studies to identify specific lithium-bearing minerals. This
work has continued and successfully highlighted new areas of interest. To date
only a small portion of the licence has been covered by detailed geological
mapping offering further potential for additional discoveries.
Bulawayo Gold-Nickel-Copper Project
The Bulawayo Project comprises EPO 1783 and EPO 1784, covering a large
1,300km2 licence area near Bulawayo with extensive Greenstone Belt rock
formations in Zimbabwe. No systematic exploration has been carried out in the
area for more than 25 years due to the previously unfavourable investment
climate in Zimbabwe. Prospective areas with thin sand/alluvial/Karoo basalt
cover have never been explored and preliminary grab sampling on the property
reported assays ranging from 3.9-16g/t Au, confirming the prospectivity of the
ground.
The aim is to explore for resources to support the development of a large
scale mine. The licences adjoin and enclose a number of small-scale gold mines
on pre-existing mining permits which provides the opportunity to integrate the
production from these operations which have a total historic production
reported as more than 1Moz Au.
Period Under Review
Work during the period focussed on defining drill ready targets at the Queen's
Mine Area prospective for gold mineralisation associated with greenstone belt
terranes. Follow-up soil sampling of a number of geophysical targets
delineated by Galileo's previously reported ground geophysical (magnetic and
resistivity) surveys have defined a number of new targets marginal to the
Queen's Gold Mine area (not part of Galileo's licence area), where historical
gold production >44,000 ounces was reported up to 1984, when reliable
record keeping ceased.
The results include definition of a number of new targets adjacent to and
along-strike from the Queen's Mine area, the majority of the new discoveries
are under shallow alluvial and Karoo sandstone cover, made visible by the
previous airborne magnetic survey flown by Galileo in June 2022.
A total of 2,455 soil samples were sent for laboratory analysis, with results
peaking at 2.1g/t Au. An anomalous 5km2 area with gold-in-soil values up to
680ppb Au has been highlighted over a number of structures delineated by the
aeromagnetic survey to the southeast of the Queen's Mine area, with further
anomalous zones indicated along-strike from the Queen's Mine area
mineralisation within consistent and prospective greenstone lithology.
New targets represent extensions of known gold-bearing structures that
typically host both commercial and small-scale gold mining operations in the
Queen's Mine region, and pXRF analyses indicate coincident anomalies of
associated elements. Zimbabwean gold mineralisation is typically associated
with narrow high-grade structures that can be mined from underground. The
Company is targeting areas where the confluence of structures and other
factors potentially create a much larger bulk target for follow up.
BOTSWANA
Kalahari Copperbelt
Galileo's exploration project currently encompasses a total of 19 exploration
licences, 8 of which were included in the final sale agreement completed in
September 2021 with Sandfire Resources, which was required to spend US$4
million on the licences in the first two years of the agreement. The remaining
KCB licences were retained 100% by Galileo.
Kalahari Copper Belt (Retained Licences)
PL253/2018
The Licence is located in the north-western portion of the Kalahari Copper
Belt with part of the Licence sandwiched between Cobre Limited ("Cobre")
exploration licences. Cobre has recently issued a series of press releases
that demonstrate the emergence of a potential new discovery in this
under-explored portion of the Belt. In this area the D'Kar/Ngwako Pan contact
is interpreted to be tightly folded and thrust repeated.
PL039/2018
The north-eastern section of the licence is dominated by a prominent NNW-SSE
trending conductor, the geometry of which suggests this area is situated at
the southwest end of a conductive dome. If the interpretation is correct, the
potential exists for the discovery of the highly prospective D'Kar
Formation/Ngwako Pan Formation contact. The setting of a conductive dome with
major faulting within the licence suggests that a A4/T3 style dome drill
target with possible mineralisation at the stratigraphic boundary between the
Ngwako Pan/D'Kar and remobilized upwards via low-angle thrusts is the most
likely exploration model for this area.
PL040/2018
The interpreted strike length of the prospective D'Kar formation contact
extends over 30km within this licence. Historic wide-spaced drilling
reportedly intersected D'Kar/Ngwako Pan contact but did not intercept
mineralisation. Historic soil sampling identified the D'Kar Formation/Ngwako
Pan Formation contact further to the southwest of the licence. The Company has
selected priority zones for soil sampling along the interpreted 30km strike of
the contact with a view to identifying potential higher-grade zones along
strike of and in between the current widely spaced drill holes.
Period under review
Exploration has continued apace on the Kalahari Copperbelt licences sold to
Sandfire Resources in 2021, and those retained by Galileo. The Kalahari
Copperbelt region is currently receiving global attention with new mine
development and a rapid advance of exploration work from new entrants and
previous players providing new thinking on the controls of mineralisation.
Sandfire Licences
Considerable work has been completed by Sandfire Resources in the region
within the period to date, a summary of which includes:
PL250/2020 - approximately 7.24km of prospective Lower D'Kar contact has been
identified warranting a TerraleachTM* soil geochemical survey. Area will also
be covered by regional airborne gravity survey ('AGG')
PL367/2018 - Four multi-element soil anomalies identified as priority targets
with infill TerraleachTM* soil surveys planned.
PL251/2020 - Scheduled TerraleachTM* soil survey over an area described by
Sandfire as a T3/A4-type target. AGG survey also to be flown.
PL366/2018 - Soil anomaly identified warranting additional soil geochemistry
in conjunction with Sandfire's announced AGG regional survey.
PL044/2018 & PL045/2018 - Airborne magnetic and radiometric geophysics and
follow up drilling confirmed the presence of magnetite and disseminated
copper-zinc mineralisation in intermediate to acid volcanic rocks - follow up
under review.
PL122/2020 & PL154/2020 - Considered low order priorities with no
additional work planned in the short to medium-term subject to results of the
pending AGG survey.
Galileo (Retained) Licences
An Airborne Gravity Gradient (AGG) survey jointly commissioned by Cobre
Limited and Sandfire Resources was undertaken during the reporting period to
include part of Galileo's licence PL253/2018, with results of the survey to be
released to Galileo, free of charge, later in the year. The results of the
survey are expected to provide valuable information on basin architecture and
identify the potential location of copper-silver bearing trap-sites analogous
to Sandfire's neighbouring T3 and A4 deposits.
A low detection mobile metal-ion (TerraleachTM*) soil sampling programme was
commenced by the Company in the reporting period, with more than 3,000 samples
planned ranging over critical contact zones in three of the retained licences,
PLs 253, 39 and 40. Sampling was planned to include ground adjacent to the
licence hosting Cobre's recent drill discoveries at Ngami and Kitlanya, where
similar soil programmes led to drill target identification. Galileo will
utilise the soil geochemical results, in conjunction with the results of the
AGG survey, to develop new targets for drilling.
Post Period Under Review
On the 11 October 2023 it was announced that the soil sampling survey had
completed, with a total of 3,373 (excluding QAQC inserts) samples collected
over critical contact zones across the retained licences. The samples are now
being processed via a sample preparation laboratory in South Africa for
dispatch to Intertek laboratory in Perth for analysis.
NEVADA
Ferber gold-copper project
Period Under Review
An earlier Galileo project review identified several drill targets at Ferber
to test both skarn-type gold-copper occurrences and Carlin-type gold
occurrences on the 100% held property. Due to strong demand for drill machines
in Nevada, it proved difficult to find a contractor to undertake diamond core
drilling at Ferber in 2022. However, the Company has proceeded with an
application for an environmental permit for the planned programme and has
engaged Rangefront Mining Services, based in Elko, Nevada, to assist in
seeking quotes from drilling contractors for Reverse Circulation (RC) drilling
with the aim of completing the planned programme during 2024.
SOUTH AFRICA
Glenover Phosphate Project (" Glenover")
Period Under Review
On the 21 June 2023 Galileo announced progress in relation to JSE Listed
Afrimat Limited's option to buy for ZAR300 million (approx. £12.8 million)
shares in and shareholder loans made to Glenover Phosphate Proprietary
Limited, in which Galileo has a 30.8% direct and 4.99% indirect investment
held via Galagen Proprietary Limited.
An addendum to the conditional sale agreement was signed by the parties on the
21 June 2023 giving rise to Afrimat's Option (the "Addendum") that removed the
requirement for the previous suspensive conditions to be met before the first
two tranches of consideration are paid and set a revised timetable for the
receipt of funds, as well as amending the second tranche to be paid in cash.
Revised timetable detailed as follows:
First tranche payment of ZAR150 million (approx. £6.4 million) in respect of
Sales Claims was settled in July 2023, by the issue of Afrimat shares
calculated on a 30-day volume weighted average price ("VWAP") on the payment
date. Galileo's portion was ZAR52.6 million (approx. £2.1 million).
30 April 2024: Second tranche payment of ZAR147 million (approx. £6.3
million) in respect of Sales Claims to be settled in cash. Galileo's estimated
portion will be approximately ZAR49 million (approx. £2.1 million).
30 April 2024: Cash consideration of ZAR3 million (approx. £0.13 million) in
respect of the Glenover shares subject to the fulfilment of the suspensive
conditions (Note 1). Galileo's estimated portion will be approximately ZAR1
million (approx. £0.04 million).
Note 1: The suspensive conditions applicable to the sale of Glenover shares
are:
i) the Approval in terms of section 11 of the Mineral and Petroleum Resources
Development Act No. 28 of 2002 ("MPRDA"); and
ii) the completion of the 30 June 2023 audited financial statements and
collation of all company documentation on or before 30 April 2024.
Financial Highlights
The Group reported loss of £521,764 (2022: loss of £1,554,313) after
taxation. Loss reported is 0.05 pence (2022: loss of 0.13 pence) per share.
Loss per share is based on a weighted average number of ordinary shares in
issue of 1,160,943,355 (2022: 1,115,819,649).
For further information, please contact:
Colin Bird, Chairman and CEO Tel +44 (0) 20 7581 4477
Edward Slowey, Executive Director Tel +353 (1) 601 4466
www.galileoresources.com (http://www.galileoresources.com)
Beaumont Cornish Limited
Nominated Advisor
Roland Cornish/James Biddle Tel +44 (0)20 7628 3396
Novum Securities Limited - Broker
Colin Rowbury/ Jon Belliss Tel +44 (0)20 7382 8416
Statement of Responsibility for the six months ended 30 September 2023
The directors are responsible for preparing the consolidated interim financial
statements for the six months ended 30 September 2023 and they acknowledge, to
the best of their knowledge and belief, that:
· the consolidated interim financial statements for the six months ended
30 September 2023 have been prepared in accordance with UK adopted IAS 34 -
Interim Financial Reporting;
· based on the information and explanations given by management, the
system of internal control provides reasonable assurance that the financial
records may be relied on for the preparation of the
consolidated interim financial statements. However, any system of
internal financial control can
provide only reasonable, and not absolute, assurance against material
misstatement or loss;
· the going concern basis has been adopted in preparing the consolidated
interim financial statements and the directors of Galileo have no reason to
believe that the Group will not be a going concern in the
foreseeable future, based on forecasts and available cash resources;
· these consolidated interim financial statements support the viability
of the Company; and
· having reviewed the Group's financial position at the balance sheet
date and for the period ending on the anniversary of the date
of approval of these financial statements they are satisfied that the
Group has, or has access to, adequate resources to continue in operational
existence for the foreseeable future.
Colin Bird
Chairman and Chief Executive Officer
28 December 2023
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£s (Restated) £s £s
ASSETS
Intangible 5,370,610 4,382,659 5,161,591
assets
6
Investment in joint ventures 7 835,149 - 835,149
Loans to joint ventures, associates and subsidiaries 9,103 284,792 9,547
Other financial 5,074,564 2,318,549 2,556,034
assets
8
Non-current assets 11,289,426 6,986,000 8,562,321
Trade and other receivables 300,308 387,734 284,923
Cash and cash equivalents 88,719 3,309,842 1,435,511
Other financial assets 51,136 - 47,351
Current assets 440,163 3,697,576 1,767,785
Non-current assets held for sale 9 160,883 2,411,269 2,323,807
Total Assets 11,890,472 13,094,845 12,653,913
EQUITY AND LIABILITIES
Share capital 32,782,905 32,146,730 32,753,530
Reserves 198,676 1,388,743 421,097
Accumulated loss (21,318,604) (20,905,667) (20,815,887)
11,662,977 12,629,806 12,358,740
Non-controlling interest 117,754 117,754 117,754
Equity 11,780,731 12,747,560 12,476,494
Liabilities
Other financial liabilities - 6 5
Non-current liabilities - 6 5
Trade and other payables 109,741 141,628 177,414
Taxation payable - 205,651 -
109,741 347,279 177,414
Total liabilities 109,741 347,285 177,419
Total Equity and liabilities 11,890,472 13,094,845 12,653,913
Joel Silberstein
28 December 2023
Company number: 05679987
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£s (Restated)£s £s
Other Income 435 - 289,040
Operating expenses (585,411) (599,130) (1,257,877)
Operating loss (584,976) (599,130) (968,837)
Investment revenue 295,433 218,012 90,096
Fair value adjustments (162,802) (401,274) 71,074
Profit/(loss) on sale of investments (19,416) - 291,758
Provision for impairment - - (274,314)
Share of (loss)/profit from equity accounted investments - (771,921) (765,172)
Profit/(loss) for the period before taxation (471,761) (1,554,313) (1,555,395)
Taxation (50,003) - 88,865
Profit/(loss) for the period after taxation (521,764) (1,554,313) (1,466,530)
Other comprehensive loss:
Exchange differences on translating foreign operations (203,374) 127,741 (837,904)
Other adjustments - - 1,996
Total comprehensive income/(loss) (725,138) (1,426,572) (2,302,438)
Total comprehensive loss attributable to:
Owners of the parent (725,138) (1,426,572) (2,302,438)
Weighted average number of ordinary shares in issue 1,160,943,355 1,115,819,649 1,130,693,464
Basic earnings/(loss) per share - pence (0.05) (0.13) (0.13)
STATEMENTS OF CHANGES IN EQUITY as at 30 September 2023
Total capital Foreign currency translation reserve Merger Shares to be issued reserve Share based payment reserve Total reserves Accumulated Total equity
Share Share
reserve loss
Capital
premium
Figures in Pound Sterling
reserve
Balance at 1 April 2022 6,707,168 25,289,562 31,996,730 (293,176) 1,047,821 150,000 319,156 1,223,801 (19,351,353) 13,869,178
Loss for the year - - - - - - - - (1,466,530) (1,466,530)
Other comprehensive income - - - (837,904) - - - (837,904) 1,996 (835,908)
Total comprehensive income for the year - - - (837,904) - - - (837,904) (1,464,534) (2,302,438)
Issue of shares net of issue costs 63,742 693,058 756,800 - - (150,00) - (150,000) - 606,800
Options issued - - - - - - 185,200 185,200 - 185,200
Options lapsed - - - - - - - - - -
Warrants lapsed - - - - - - - - - -
Warrants issued - - - - - - - - - -
Warrants exercised - - - - - - - - - -
Shares to be issued - - - - - - - - - -
Total contributions by and distributions to owners of company recognised 63,742 693,058 756,800 - 185,200 35,200 -
directly in equity
- (150,000) 792,000
Balance at 1 April 2023 6,770,910 25,982,620 32,753,530 (1,131,080) 1,047,821 - 504,356 421,097 (20,815,887) 12,358,740
Loss for the 6 months - - - - - - - - (521,764) (521,764)
Other comprehensive income - - - (203,374) - - - (203,374) - (203,374)
Total comprehensive income for the 6 months - - - (203,374) - - - (203,374) (521,764) (725,138)
Warrants lapsed - - - - - - (19,047) (19,047) 19,047 -
Issue of shares 2,500 26,875 29,375 - - - - - - 29,375
Total contributions by and distributions to owners of company recognised 2,500 26,875 29,375 - - - (19,047) (19,047) 19,047 29,375
directly in equity
Balance at 30 September 2023 6,773,410 26,009,495 32,782,905 (1,334,454) 1,047,821 - 485,309 198,676 (21,318,604) 11,662,977
CONSOLIDATED STATEMENTS OF CASH FLOW Six months Six months Year
ended ended ended
30 September 30 September 31 March
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£s (Restated)£s £s
Cash used in operations (714,898) (595,708) (1,495,390)
Interest income - - -
Net cash from operating activities (714,898) (592,708) (1,495,390)
Additions to intangible assets (236,652) (154,106) (1,229,886)
Sale of intangible - - 291,760
Distributions from Joint Ventures (incl subs, JVs & Assoc) - - -
Proceeds on sale of non-current assets held for sale - - -
Net movement in loans 444 509,567 369,579
Purchase of financial assets (965,385) (1,101,906) (1,149,545)
Sale of financial assets 569,704 - -
Net cash flows from investing activities (631,889) (746,445) (1,718,092)
Net Proceeds on share issue - - -
Repayment of loans from group companies (5) - (1)
Net cash flows from financing activities (5) - (1)
Total cash movement for the period (1,346,792) (1,339,153) (3,213,483)
Cash at the beginning of the period 1,435,511 4,648,995 4,648,994
Total cash at end of the period 88,719 3,309,842 1,435,511
Notes to the Financial Statements
1. Status of interim report
The Group unaudited condensed interim results for the six months ended 30
September 2023 have been prepared using the accounting policies applied by the
Company in its 31 March 2023
annual report, which are in accordance with UK adopted international
Accounting Standard, the AIM rules of the London Stock Exchange and the
Companies Act 2006 (UK). This condensed consolidated interim financial report
does not include all notes of the type normally included in an annual
financial report. Accordingly, this report is to be read in conjunction with
the annual report for the year ended 31 March 2023 and any public
announcements by Galileo Resources Plc. All monetary information is presented
in the presentation currency of the Company being Great British Pound. The
Group's principal accounting policies and assumptions have been applied
consistently over the current and prior comparative financial period. The
financial information for the year ended 31 March 2023 contained in this
interim report does not constitute statutory accounts as defined by section
435 of the Companies Act 2006. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not contain a statement under section
498(2)-(3) of the Companies Act 2006.
2. Basis of preparation
The consolidated financial statements incorporate the financial statements of
the Company and all entities for the six months ended 30 September 2023,
including special purpose entities, which are controlled by the Company.
Control exists when the Company has the power to govern the financial and
operating policies of an entity to obtain benefits from its activities. The
results of subsidiaries are included in the consolidated annual financial
statements from the effective date of acquisition to the effective date of
disposal. Adjustments are made when necessary to the annual financial
statements of subsidiaries to bring their accounting policies in line with
those of the Group.
All intra-group transactions, balances, income and expenses are eliminated in
full on consolidation. Non-controlling interests in the net assets of
consolidated subsidiaries are identified and recognised separately from the
Group's interest therein and are recognised within equity. Losses of
subsidiaries attributable to non-controlling interests are allocated to the
non-controlling interest even if this results in a debit balance being
recognised for non-controlling interest. Transactions which result in changes
in ownership levels, where the Group has control of the subsidiary both before
and after the transaction, are regarded as equity transactions and are
recognised directly in the statement of changes in equity. The difference
between the fair value of consideration paid or received and the movement in
non-controlling interest for such transactions is recognised in equity
attributable to the owners of the parent.
3. Segmental analysis
Business unit
The Company's investments in subsidiaries and associates, that were
operational at year-end, operate in four geographical locations being South
Africa, Botswana, Zambia, Zimbabwe and USA, and are organised into one
business unit, namely Mineral Assets, from which the Group's expenses are
incurred and future revenues are expected to be earned. This being the
exploration for and extraction of its mineral assets through direct and
indirect holdings. The reporting on these investments to the board focuses on
the use of funds towards the respective projects and the forecasted profit
earnings potential of the projects.
The Company's investment in Zambia did not contribute to the operating profit
or losses and is excluded from the segmental analysis.
Geographical segments
An analysis of the profit/(loss) on ordinary activities before taxation is
given below:
Six months ended 30 Six months ended 30 Year
September September ended
2023 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
£s £s £s
Profit/(loss) on ordinary activities before taxation:
Rare earths, aggregates and iron ore and manganese - South Africa 90,469 (572,195) (717,323)
Gold - USA (1,155) (4,214) (9,892)
Copper - Botswana (47,696) (22,664) 110,901
Copper and Corporate costs - United Kingdom
(563,382) (955,240) (939,081)
Gold and lithium - Zimbabwe - - -
(521,764) (1,554,313) (1,555,395)
Geographical segments
An analysis of total liabilities:
Six months ended 30 Six months ended 30 Year
September September ended
2023 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
£s £s £s
Rare earths, aggregates and iron ore and manganese - South Africa (1,915) (95) (64,546)
Gold - USA - - -
Copper - Botswana (4,759) (205,651) (4,794)
Copper and Corporate costs - United Kingdom
(103,067) (141,539) (108,074)
Gold and lithium - Zimbabwe - - -
(109,741) (347,285) (177,414)
Geographical segments
An analysis of total assets:
Six months ended 30 Six months ended 30 Year
September September ended
2023 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
£s £s £s
Rare earths, aggregates and iron ore and manganese - South Africa 2,288,091 5,726,276 3,459,946
Gold - USA 1,750,566 1,769,023 1,613,873
Copper -Zambia 2,964,971 2,338,362 2,508,201
Copper - Botswana 1,478,873 1,653,284 1,481,683
Copper and Corporate costs - United Kingdom
1,138,263 897,360 2,743,833
Gold and lithium - Zimbabwe 2,269,708 710,540 846,377
11,890,472 13,094,845 12,653,913
4. Financial review
The Group reported loss of £521,764 (2022: loss of £1,554,313) after
taxation. Loss reported is 0.05 pence (2022: loss of 0.13 pence) per share.
Loss per share is based on a weighted average number of ordinary shares of
1,160,943,355 (2022: 1,115,819,649).
5. Share Capital
During the period under review the Company issued new ordinary shares as
follows:
Number of
Date ordinary shares
Opening balance 1 160 688 453
Acquisition 2 500 000
Closing balance 1 163 188 453
No new ordinary shares were issued by the Company post the period under
review.
Warrants
The Company had the no warrants outstanding at the period end.
Share Options 30 September 2023 30 September 31 March
2022 2023
Outstanding at the beginning of the year 98,700,000 58,700,000 58,700,000
Options granted during the year - 39,000,000 40,000,000
98,700,000 97,700,000 98,700,000
6. Intangible assets
Reconciliation of Intangible assets:
Group as at 30 September 2023
Asset currency Opening balance Additions Foreign exchange movements Closing
balance
Exploration and evaluation asset - Botswana 1,470,267 50,810 (43,070) 1,478,007
BWP
Exploration and evaluation asset - U.S.A. 2,154,613 114,881 15,437 2,284,931
US$
Exploration and evaluation asset - Zambia 1,536,711 70,961 - 1,607,672
ZMW
Total intangible assets 5,161,591 236,652 (27,633) 5,370,610
Group as at 30 September 2022
Asset currency Opening balance Additions Foreign exchange movements Closing balance
Exploration and evaluation asset - Botswana BWP 1,467,320 32,692 12,976 1,512,988
Exploration and evaluation asset - U.S.A. US$ 1,893,024 121,414 340,007 2,354,445
Exploration and evaluation asset - Zambia ZMW 515,226 - - 515,226
Total intangible assets 3,875,570 154,106 352,983 4,382,659
Group as at 31 March 2023
Asset currency Opening Additions Foreign exchange movements Total
Exploration and evaluation asset - Botswana BWP 1,467,320 77,614 (74,667) 1,470,267
Exploration and evaluation asset - U.S.A. US$ 1,893,024 130,788 130,801 2,154,613
Exploration and evaluation asset - Zambia ZMW 515,226 1,021,485 - 1,536,711
3,875,570 1,229,887 56,134 5,161,591
Botswana
The Company currently holds copper licenses in the highly prospective Kalahari
Copper Belt ("KCB"), The KCB is approximately 800km long by up to 250km wide,
is a northeast-trending Meso- to Neoproterozoic belt that occurs
discontinuously from western Namibia and stretches into northern Botswana
along the northwestern edge of the Paleoproterozoic Kalahari Craton. The belt
contains copper-silver mineralisation, which is generally stratabound and
hosted in metasedimentary rocks of the D'Kar Formation near the contact with
the underlying Ngwako Pan Formation. The hanging wall-footwall redox contact
is a distinctive target horizon that consistently hosts copper-silver
mineralization in fold-hinge settings. The geological setting is similar to
that of the major Central African Copper Belt and Kupferschiefer in Poland.
7. Investment in joint ventures
Six months ended 30 Six months ended 30 Year
September September ended
2023 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
£s £s £s
Cordoba -BC Ventures 835,149 - 835,149
835,149 - 835,149
On 21 January 2022, Cordoba and BC Ventures entered into an option agreement
(the "Principal Agreement") which provided Cordoba with an option to acquire
51% of BC Ventures by funding US$1,500,000 of exploration expenditure within 2
years for BC Venture's 100% owned Zimbabwean subsidiary Sinamatella
Investments (Private) Limited ('Sinamatella') holds three Exclusive
Prospecting Orders ('EPOs') No's 1782, 1783 and 1784 in the Kamativi Regional,
'Bulawayo North' and 'Bulawayo South' areas in the Republic of Zimbabwe. EPO
1782 is primarily prospective for lithium (tantalum, niobium, tin, tungsten,
REE's and copper) whilst EPO5 1783 and 1784 are primarily prospective for
gold. The three EPOs were issued on 12 March 2021 and have a term of 3 years.
On 4 March 2022 Galileo entered into a Deed of Assignment with Cordoba and BC
Ventures (the "Deed of Assignment") under which Cordoba has assigned all its
rights and obligations under the Principal Agreement to Galileo for £150,000
which was settled by the issue of 13,741,609 new ordinary Galileo Resources
plc shares in relation to the Consideration Shares.
On 9 August 2022, Galileo signed an addendum (the "Addendum") to an agreement
dated 21 January 2022. Under the Addendum, Galileo acquired a 29% shareholding
in BC Ventures (the "Share Acquisition") for the issue of 50,000,000 Galileo
Resources plc shares (the "Consideration Shares").
The period for the expenditure of US$1.5M to be incurred by the Company under
the Principal Agreement to acquire 51% of BC Ventures was extended by 6 months
to 21 July 2024.
As 31 March 2022, all amounts in relation to BC Ventures were accounted for as
Other Financial Assets.
8. Other Financial assets
Six months ended 30 Six months ended 30 Year
September September ended
2023 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
£s £s £s
Cordoba -BC Ventures 1,434,559 710,540 836,107
Sandfire listed investment 702,228 799,129 1,271,476
Afrimat listed investment 2,096,802 - -
Kashitu project - 39,050 -
Luansobe project - 498,801 -
Shinganda Project 611,190 249,651 430,523
Star Zinc 18,162 21,378 17,928
Northwest Zambia project 211,623 - -
5,074,564 2,318,549 2,556,034
Sandfire listed investment
As announced on 16 September 2021, Galileo sold 9 of its Company's Kalahari
Copper Belt Licences to Sandfire Resources. As part of the consideration
Sandfire issued 370,477 Sandfire ordinary shares to the Company. As the 30
September 2032, the Company held 216,000 Sandfire ordinary shares.
Sandfire Resources is an Australian listed company and have an enviable track
record of copper/gold discovery, development execution and operation.
Afrimat Limited listed investment
As announced on 23 June 2023, the Company received the first tranche payment
of was ZAR52.6 million (approx. £2.1 million) in respect of Sales Claims
which was settled by the issue of 903,994 Afrimat shares calculated on a
30-day volume weighted average price ("VWAP") of ZAR55.91.
Afrimat is a leading mid-tier mining and materials company. The Group listed
on the JSEMain Board in 2006 and is currently listed in the Basic Materials:
General Mining sector.
The group supplies a broad range of products ranging from Construction
Materials (aggregates, bricks, blocks, pavers and readymix concrete),
Industrial Minerals (lime and lime products), and Bulk Commodities (iron ore,
anthracite and manganese).
9. Non-Current Held For Sale asset
Group as at 30 September 2023
Glenover Phosphate (Pty) Ltd
The Company currently holds a 30.70% direct investment in Glenover and also
has an indirect investment of 4.99% in Glenover through its shareholding in
Galagen Proprietary Limited, a special purpose vehicle incorporated to hold
the BEE shareholding in the Glenover project, resulting in a total interest in
Glenover of 35.69%.
As announced on 9 December 2021, Glenover entered into a conditional sale of
shares agreement with JSE Limited listed Afrimat Limited (JSE: AFT)
("Afrimat") Glenover also between Afrimat, Glenover and the shareholders of
Glenover including Galileo Resources SA (Pty) Ltd the Company's wholly owned
South African subsidiary under which Afrimat has the option to acquire the
shares in and shareholders loans made to Glenover for ZAR300 million
(approximately £14.3 million).
On 26 October 2022, the Company announced that Afrimat had given notice to
Glenover of its intention to conditionally acquire 100% of the shares in
Glenover from the current shareholders of Glenover for consideration of ZAR300
million (approximately £14.3 million) with the Company to receive ZAR107
million (approximately £5.1 million).
On the 21 June 2023 Galileo announced progress in relation to JSE Listed
Afrimat Limited's option to buy for ZAR300 million (approx. £12.8 million)
shares in and shareholder loans made to Glenover Phosphate Proprietary
Limited, in which Galileo has a 30.8% direct and 4.99% indirect investment
held via Galagen Proprietary Limited.
An addendum to the conditional sale agreement was signed by the parties on the
21 June 2023 giving rise to Afrimat's Option (the "Addendum") that removed the
requirement for the previous suspensive conditions to be met before the first
two tranches of consideration are paid and set a revised timetable for the
receipt of funds, as well as amending the second tranche to be paid in cash.
Revised timetable detailed as follows:
First tranche payment of ZAR150 million (approx. £6.4 million) in respect of
Sales Claims was settled in July 2023, by the issue of Afrimat shares
calculated on a 30-day volume weighted average price ("VWAP") on the payment
date. Galileo's portion was ZAR52.6 million (approx. £2.1 million).
30 April 2024: Second tranche payment of ZAR147 million (approx. £6.3
million) in respect of Sales Claims to be settled in cash. Galileo's estimated
portion will be approximately ZAR49 million (approx. £2.1 million).
30 April 2024: Cash consideration of ZAR3 million (approx. £0.13 million) in
respect of the Glenover shares subject to the fulfilment of the suspensive
conditions. Galileo's estimated portion will be approximately ZAR1 million
(approx. £0.04 million).
10. Going concern
The Company has sufficient financial resources to enable it to continue in
operational existence for the foreseeable future and meet its liabilities as
they fall due.
The directors have further reviewed the financial position of the Company at
the date of this report and Company's cash flow forecast which includes the
receipt of £2.1 million from the proceeds of the sale of shares in Glenover
which the Company anticipates will be received by the April 2024. The Company
has a very prospective portfolio of projects all of which will be pursued
during 2024. The progress of certain projects beyond the second half of 2024
will depend on receipt of the funds from the Glenover sale proceeds as
referred to above. Should the receipt of funds be delayed, then certain low
priority projects may be deferred until receipt of the funds or alternative
funding is secured.
Accordingly, the directors consider it appropriate to continue to adopt the
going-concern basis in preparing these financial statements. This basis
presumes that funds will be available to finance future operations and that
the realisation of assets and settlement of liabilities and commitments will
occur in the ordinary course of business.
11. Prior Period Adjustment
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 30 September Adjustment Restated 30 September 2022
2022
Fair value on Non-Current asset held for sale (2,763,857) 2,763,857 -
Other comprehensive income 91,182 36,559 127,741
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 30 Adjustment Restated 30 September 2022
September
2022
Non-Current asset held for sale 5,138,367 (2,727,068) 2,411,269
Accumulated Loss 18,142,010 2,763,657 20,905,667
Foreign currency translation reserve 201,994 (36,559) 165,435
The 30 September 2022 unaudited balances have been restated in the 30
September 2023 unaudited financial statements. The balances have been restated
due to the Non-Current asset held for sale being measured at the fair value
instead of the carrying amount. The held for sale assets are measured at the
lower of their carrying amount and fair value less costs to sell.
12. Post balance sheet events
There were no significant events.
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