REG - Galileo Resources - Glenover Assets Sale Update

Galileo ResourcesAnnouncement

30/03/2022 09:45

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RNS Number : 5732G  Galileo Resources PLC  30 March 2022

 

For immediate release

 

30 March 2022

Galileo Resources Plc

("Galileo" or "the Company")

Glenover Assets Sale Update

 

Galileo Resources plc ("Galileo "or the "Company") further to its
announcements on 9 December 2021 and 11 February 2022 is pleased to provide an
update regarding the Glenover Asset sale between Glenover Proprietary Limited
("Glenover") and JSE Limited listed Afrimat Limited. Capitalised terms defined
in these previous announcements have the same meaning in this announcement
unless indicated to the contrary.

 

Highlights:

 

·    The Company has received confirmation that all conditions for Afrimat
Limited to acquire the Vermiculite Mining Right from Glenover have been met
and that Glenover has elected for the Vermiculite Mining Right Consideration
to be paid in cash, of which ZAR10M (approx. £523K) is due to the Company

 

 

Colin Bird Chairman & CEO said: "I am pleased that the Company has
received confirmation that all conditions to acquire the Vermiculate Mining
Right have been met and £523K is now due to the Company. This is a further
favourable step in the progressive sale of the Glenover Asset. The funds will
be employed in releasing value from our lithium project in Zimbabwe and
Copper-Gold projects in Southern Africa".

 

 

Glenover Sale

 

As previously announced the Company has a 29% direct and 4.99% indirect
investment in Glenover held via Galagen Proprietary Limited who are Glenover's
BEE partner and is potentially due a further ZAR102M (approx. £5.33M) being
its portion of the share sale proceeds due under the Glenover Share Sale
Agreement (the "Sale Shares Consideration") which is conditional on Afrimat by
15 June 2022 or, if an extension has been granted by 10 November 2022
exercising their option to acquire the Glenover Shares.

 

The Sale Shares Consideration will be settled in a combination of cash and
Afrimat shares;

 

·    50% of the Sale Shares Consideration shall, at the election of
Afrimat, be split between Afrimat shares based on the Afrimat 30 day VWAP at
which the Afrimat shares traded on the JSE Limited on the relevant Effective
Date and cash (Afrimat has to make this election on the relevant Effective
Date); and

·    50% of the Sale Shares Consideration shall, at the election of the
Sellers (which includes the Company), be split between Afrimat shares 30 day
VWAP at which the Afrimat shares traded on the JSE Limited on the relevant
Effective Date and cash (the Sellers have to make this election on the
relevant Effective Date).

 

Colin Bird the Chairman of Galileo has waived in favour of the Company the
bonuses awarded to him by Glenover in his capacity as a director of Glenover
of 1.5% of the gross proceeds of the Glenover Agreements and these amounts
will as received be added to the Transaction Awards previously announced that
will, at the determination of the Company's remuneration committee, be paid as
these transactions are successfully concluded.

 

You can also follow Galileo on Twitter: @GalileoResource

 

For further information, please contact: Galileo Resources PLC

 

 Colin Bird, Chairman                       Tel +44 (0) 20 7581 4477
 Beaumont Cornish Limited - Nomad           Tel +44 (0) 20 7628 3396

 Roland Cornish/James Biddle
 Novum Securities Limited - Joint Broker    +44 (0) 20 7399 9400

 Colin Rowbury /Jon Belliss
 Shard Capital Partners LLP - Joint Broker  Tel +44 (0) 20 7186 9952

 Damon Heath

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").

 

 

 

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