Galileo Resources exercises right to acquire rest of Enviro Zambia

The AIM-traded firm said it had exercised that right by giving notice in writing to the BMR Group to proceed.

It said the consideration for the acquisition comprised a cash component of £50,000, and the issuance of 15 million Galileo ordinary shares to BMR, at a price of 1.15p each.

Also, in terms of the binding heads of terms, Galileo said it had elected, and BMR had agreed, to the issue of 9,615,385 Galileo ordinary shares in lieu of the £50,000 cash payment.

As a result of the acquisition, Galileo said it was increasing its interest in Enviro Zambia from 85% to 100%.

Enviro Zambia owns 95% of Enviro Processing Zambia, to which Star Zinc's large-scale exploration licence 19653-HQ-LEL remained to be transferred, subject to Zambian regulatory approval, from a wholly-owned subsidiary of BMR - Enviro Processing.

“Completion of this acquisition adds substantially to the company's prospective zinc metal base and has increased its beneficial interest to 95% in its advanced Star Zinc project,” said Galileo chief executive officer Colin Bird.

“The Kashitu Zinc mineralisation has the added benefit of vanadium, which in today's terms will add significant value to the overall metal package.”

Bird said historical evidence had indicated large tracts of willemite, together with potential for sulphides, and that the Kashitu concession was larger than Star Zinc.

“Its proximity to the Kabwe refinery adds potentially immense value to the acquisition,” Bird explained.

“We look forward to defining the quantum of this prospective deposit.”