Galileo gets cash from Glenover, Star Zinc sales

11th Feb 2022 14:52

(Sharecast News) - Galileo Resources updated the market on the Glenover asset sale between Glenover and Afrimat on Friday, as well as the sale of the Star Zinc project to Siege Mining.

The AIM-traded firm said it had received ZAR 50.7m (£2.4m) from the Glenover unconditional asset sale, including the amount due through its indirect holding via Galagen.

It had also received royalties due to it under the Star Zinc sale agreement of $0.12m from the first three shipments.

Galileo said it would be due a further $0.46m from shipments subject to final weights and assays.

"This marks the start of earnings from the Star Zinc operation, which are progressing and will continue exporting more material," said chairman and chief executive officer Colin Bird.

"Our Kashitu operation will shortly be drilled with a view to a similar operation as Star Zinc but under Galileo's control for Galileo benefit other than third party costs related to the Kashitu operation.

"I am pleased that the company has received the first distribution of approximately £2.4m from the Glenover asset sale, and look forward to the company potentially receiving approximately a further £0.47m from Glenover's conditional sale of its vermiculite mining rights, and £4.78m if Afrimat exercises its option to acquire Glenover."

At 1419 GMT, shares in Galileo Resources were up 5.71% at 1.11p.