REG - Galileo Resources - Royalty and Exploration Agreement at Ferber

Galileo ResourcesAnnouncement

13/05/2025 07:00

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RNS Number : 2924I  Galileo Resources PLC  13 May 2025

13 May 2025

 

RNS Number:

Galileo Resources Plc

("Galileo" or the "Company")

 

Royalty and Exploration Agreement to Advance Exploration at Ferber Property,
Nevada

 

The Company has signed a royalty agreement with Bronco Creek Exploration Inc.
("BCE"), a wholly-owned subsidiary of EMX Royalty Corporation ("EMX"), to
advance exploration at its' 100% owned Ferber copper-gold property ("the
Property") in Nevada, USA by leveraging BCE's wide operational background and
technical knowledge of the mineral potential of the district.

 

 

Highlights

 

·    BCE will provide Galileo with exploration services, management and
local technical knowledge based on extensive experience across the Property
and similar projects in Nevada and adjoining states.

 

·    Galileo will fund a two-stage exploration programme with BCE
providing technical input and oversight in return for up to a 1% Net Smelter
Return ("NSR") royalty interest in the Property.

 

·    BCE will have the option to purchase a further 0.5% NSR interest for
US$1m at any time prior to the completion of a Feasibility Study.

 

·    Work on the Phase 1 Target Generation programme is planned to
commence imminently, to be followed by a Reconnaissance Drilling programme.
The Phase 1 Target Generation programme will include structural mapping and
modelling, alteration mapping, soil sampling and possible ground geophysics.

 

·    Initial data evaluation has identified potential structural targets
associated with the Ferber intrusive complex and its margins which have been
subject to widespread, small-scale historic production of polymetallic ores
including copper, lead and silver and where previous drilling has intersected
gold grades of 2.37g/t Au over 4.6m and 0.59g/t Au over 10.7m and copper
grades of 0.83% Cu over 12.0m.

 

·    Anomalous levels of several other metals on the US critical minerals
list have also been identified in historic work, including zinc, bismuth and
arsenic which could add significant value to the Property.

 

 

 

Colin Bird Chairman & CEO said: "We are pleased to have completed this
royalty arrangement with Bronco/EMX, a company that we hold in high regard.
Their in-country presence, local knowledge and exploration expertise will
greatly assist in our initial field programmes. We look forward to working
with them and, if appropriate, to extending the arrangement based on
successful exploration progress.

 

The Ferber project is ideally located in a major copper-gold Province and the
general push towards support for home-based projects in the USA is expected to
be of considerable assistance to the project."

 

 

 

Galileo/BCE Agreement Summary

 

·    Agreement between Galileo's wholly owned subsidiary St. Vincent
Minerals US, Inc. and BCE.

·    Galileo retains 100% ownership of Ferber and will continue to fund
the project.

·    A two-stage exploration programme is planned, comprising a Target
Generation programme and a follow-up Reconnaissance Drilling programme.

·    BCE will contribute its extensive geological expertise and proven
track record from similar projects in Nevada and the surrounding region, while
also providing on-the-ground management throughout both phases of the
programme.

·    BCE's input and management time will not be charged to Galileo during
the Target Generation phase and only a 7.5% management fee will be charged
during the Reconnaissance Drilling phase, with no charge for BCE personnel
input.

·    In return for the above, Galileo will grant BCE a perpetual 0.33% NSR
Royalty upon completion of the Target Generation phase and a further perpetual
0.67% NSR Royalty on completion of the Reconnaissance Drilling phase.

·    BCE shall also have the right to acquire an additional 0.5% Royalty
for payment of US$1m at any time up to completion of a Feasibility Study.

·    If the Company receives a Third Party Offer for part or all of the
Property for a cash consideration, BCE will have a right of first refusal to
match such an offer on the same terms.

·    Should Galileo wish to extend the exploration programme beyond the
Reconnaissance Drilling phase any further BCE assistance with the programme
would be subject to an additional agreement between the two parties.

 

 

About Bronco Creek Exploration Inc. & EMX Royalty Corp.

 

BCE is a wholly owned subsidiary of EMX Royalty Corporation focused on
copper-gold exploration in the western United States. BCE has an extensive
exploration portfolio located in key mining districts of Arizona, New Mexico,
Nevada, Idaho and Wyoming. The properties include porphyry copper-molybdenum,
porphyry copper-gold, bulk tonnage gold, and high-grade gold-silver vein
targets. Many of the projects are currently under joint venture, lease/option,
or other partnership agreements.

Their technical team generates exploration targets by employing decades of
regional experience, applying leading-edge geologic concepts and models,
having made significant contributions to the understanding of multiple ore
deposit types, including reconstruction of extended and dismembered ore
deposits of the Basin and Range province of North America. This strategic
advantage allows BCE to realize opportunities in diverse geological
environments, including reinterpreting the geology of classic mineral
districts and recognizing new opportunities in under-explored terrains.

EMX is a public Canadian-based precious and base metals royalty company.
EMX's investors are provided with discovery, development, and commodity
price optionality, while limiting exposure to risks inherent to operating
companies. The Company's common shares are listed on the NYSE American
Exchange and TSX Venture Exchange under the symbol "EMX". Please see
www.EMXroyalty.com (http://www.EMXroyalty.com) for more information.

 

 

Ferber Project Background

 

The Property, located 40 kilometres south of Wendover in Elko County, Nevada,
comprises a series of patented and unpatented claims covering an area of about
20 square kilometres.

 

The Ferber District consists of a multi-phase Eocene igneous complex intruding
Pennsylvania-Permian age carbonates. The limestone units are domed around the
intrusive. Marble and skarn are developed at the margin of the intrusive
complex. The sedimentary and intrusive rock is cut by faults of various
orientations. Polymetallic mineralisation occurs as contact skarn and
replacement in limestone and the intrusive. Possible structurally controlled
sediment hosted gold deposits are present, as well as a porphyry base
metals/gold target.

 

Copper-lead-silver-gold deposits were discovered in the area in the 1880s. Ore
was shipped from the Martha Washington, Big Chief, Regent and other small
mines intermittently over the years. Limited production figures for the mines
list 97,878 pounds copper, 192,613 pounds lead, 11,851 ounces silver. Cordex
Exploration, Royal Gold and FMC Corporation have conducted exploration in the
area since 1980s-1990s.

 

Numerous surface samples have been collected during historic exploration along
with limited, mostly shallow, drilling. Reported drill intercepts include
2.37g/t Au over 4.6m and 0.59g/t Au over 10.7m as well as 0.83% Cu over 12.0m.
Individual grab samples collected by Galileo from old workings and dumps have
ranged up to 10.8g/t Au, 674g/t Ag, 4.19% Cu, 8.71% Pb and 7.62% Zn. In
addition, assaying for a limited range of other elements has shown anomalous
levels of bismuth and arsenic which are on the US list of critical minerals.

 

 

 

Technical Sign-Off

Technical information in this announcement has been reviewed by Edward (Ed)
Slowey, BSc, PGeo, Technical Director of Galileo. Mr Slowey is a geologist
with more than 40 years' relevant experience in mineral exploration and
mining, a founder member of the Institute of Geologists of Ireland and is a
Qualified Person under the AIM rules. Mr Slowey has reviewed and approved
this announcement.

 

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").

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Forward Looking Statements:

Certain statements in this announcement are or may be deemed to be forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'' ''could'' "should" ''envisage''
''estimate'' ''intend'' ''may'' ''plan'' ''will'' or the negative of those
variations or comparable expressions including references to assumptions.
These forward-looking statements are not based on historical facts but rather
on the Directors' current expectations and assumptions regarding the Company's
future growth results of operations performance future capital and other
expenditures (including the amount. Nature and sources of funding thereof)
competitive advantages business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and assumptions and
are based on information currently available to the Directors. A number of
factors could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks associated with
vulnerability to general economic and business conditions competition
environmental and other regulatory changes actions by governmental authorities
the availability of capital markets reliance on key personnel uninsured and
underinsured losses and other factors many of which are beyond the control of
the Company. Although any forward-looking statements contained in this
announcement are based upon what the Directors believe to be reasonable
assumptions. The Company cannot assure investors that actual results will be
consistent with such forward-looking statements.

 

 

Technical Glossary

 

 "Au"             Gold

 "Cu"             Copper

 "Eocene"         An epoch of the Tertiary period between the Palaeocene and Oligocene epochs

 "g/t"            Grammes/ tonne

 "igneous"        Applied to rocks that have solidified from a molten state

 "intrusive"      A body of igneous rock that invades older rocks

 "Pb"             Lead

 "Pennsylvanian"  A sub-period of the Carboniferous Period lasting from approximately 323.2 to
                  298.9 million years ago

 "Permian"        Period of Earth's history from 225 to 280 million years ago

 "porphyry"       A deposit of disseminated copper minerals in or around a large body of
                  intrusive rock

 "skarn"          Metamorphosed rock resulting from the hydrothermal interaction of hot silicate
                  magmas and cooler lime bearing sedimentary rocks

 "Zn"             Zinc

 

 

 

 

 

 

 

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