Galileo reaches joint-venture agreement with BMR for Star Zinc acquisition

Galileo Resources announced on Tuesday that it had reached an agreement in its joint-venture partnership with Star Zinc to the sound of $1m cash.

Enviro Processing Zambia, a subsidiary of Galileo's partner BMR Group, would be ponying up the funds to acquire Star from Bushbuck Resources with the payments to come in four trenches.

The first payment of $130,000 had already been released to Bushbuck at the time of the announcement of the deal, with the company stating that a further $400,000 was payable on 4 September, $300,000 on 28 November and the final payment of $170,000 would be required before February 2018.

Galileo also reached a separate agreement with BMR to support the acquisition by advancing it $591,600, at an interest rate of 12% per annum, to enable the purchase of Star Zinc and giving it a 51% equity stake in the Enviro unit.

An 18-month work programme was put in place for Star zinc's assets at an estimated cost of $250,000.

Colin Bird Chairman and CEO of Galileo said, "We are pleased that the acquisition of Star Zinc has been effected expeditiously. The parties will now cooperate to complete formal transfer of the Zambian licence including government consent. We look forward to formalising the project JV agreement and pursuing aggressively our work programme to take the project forward including increasing the Star Zinc resource."

As of 1510 BST, shares in Galileo Resources had moved forward 4.57% to 2.29p.