Extension of Agreement to sell Interest in JV

 

                                                                                                         

  7.00am  28 August 2015

 

Galileo Resources Plc

("Galileo" or the "Company") 

Extension of Agreement in Respect of Potential Sale of Interest in Joint Venture

 

Galileo (AIM: GLR), the exploration and development mining company, announces that it has agreed to a request from joint venture partner Fer‐ Min‐Ore Proprietary Limited ("Fer‐Min‐Ore"), to extend the completion of the conditional Sale Agreement until 28 February 2016. The commercial terms of the extended Sale Agreement ("Proposed Transaction"), pursuant to which the Company has offered to sell ("Offer") and Fer-Min-Ore ("Purchaser") has offered to 
purchase all the Company's rights, title, interest and shares in the capital of Glenover Phosphate Proprietary Limited ("Glenover") for a purchase consideration
of US$4 million, subject to financing, are unchanged (as originally announced on 28 January 2015 and further extended on 11 May 2015).  

 

The Offer remains subject to:

 

a.    the Proposed Transaction being completed within six month of the granting of this extension commencing on the 29^th August 2015; and

 

b.    to the extent required, approval of the Proposed Transaction by relevant regulatory bodies, including, but not limited to, any approvals required from the Department of Minerals and Energy (South Africa) or other relevant regulatory authority in terms of section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002.

 

                               Colin Bird Chairman said:" During the previous option period significant work was
                               carried on certain process fundamentals in order to guarantee process recoveries and      
                               consistency. In order to fully satisfy process due diligence further work will be required
                               and this is expected to be carried out during the extension period."

 

Further details of Glenover and its rare earth and phosphate project are available from the Company's website, as well as a copy of this announcement: www.galileoresources.com

 

 

You can also follow Galileo on Twitter: @GalileoResource

 

For further information, please contact:
Colin Bird Chairman	Tel +44 (0) 20 7581 4477
Andrew Sarosi, Technical Director	Tel +44 (0) 1752 221937
Beaumont Cornish Limited - Nomad Roland Cornish/ James Biddle	Tel +44 (0) 20 7628 3396
Beaufort Securities Limited ‐ Joint Broker Elliot Hance	Tel +44 (0) 20 7382 8416
Daniel Stewart & Co ‐ Joint Broker David Coffman/Martin Lampshire	Tel + 44 (0) 20 7776 6596