[Botswana] Galileo Resources completes acquisition of Africibum
21-10-2020 08:33:00 | by: Pie Kamau | hits: 6883 | Tags:

Exploration and development mining company Galileo announced the completion of the acquisition of 100% of Africibum and its interests in the North East Kalahari Copper Belt project in Botswana.

Colin Bird, Executive Chairman and CEO of Galileo said: “I am very pleased that we have completed the acquisition of Africibum whose licences lie in an area of high prospectivity in the Kalahari Copper Belt.  The licence area is 15 km from the Boseto Copper Project and generally on trend with other known discoveries in the area.  With drill holes assaying >1% Cu the project has already advanced beyond the conceptual stage, and it is the intention to test for an extension of the open strike on one licence and update the geophysics on another licence. The Acquisition completes the Company’s Kalahari Copper Belt portfolio and we look forward to exploration in our expanded footprint in the Belt which is part of the Northwest Botswana Rift which the USGS in 2015 reported as the world’s most prospective area for yet-to-be discovered sediment hosted copper deposits.” 

The consideration payable by Galileo at Completion of the Acquisition is a total of:

(a) 42,000,000 fully paid ordinary shares in the Company (“Galileo Shares”) comprising:

(i) 35,000,000 Galileo Shares to be issued to Africibum’s ordinary shareholders (the “Sellers (“Ordinary Share Consideration”), and 

(ii) 7,000,000 Galileo Shares to be issued to one of the Sellers in relation to the reimbursement of costs incurred by Africibum to date (“Reimbursement Share Consideration”) at the same price ;and

(b) 10,000,000 warrants, with an expiry date two years from the Completion Date of the Acquisition, to acquire Galileo Shares at an exercise price of 2 pence per share which is a an approximate 190 % premium to 0.691 pence being the mid-market closing share price of Galileo Shares on 15 October 2020 (“Warrant Consideration”).

Based on the closing price of 0.691 pence on 15 October 2020 the current aggregate market value of the Ordinary Share and Reimbursement Share Consideration is £290,220. The Sellers are a number of number of parties including M & A Wealth (Pty) Ltd and entities of which Christian Cordier is a Director.

Application to trading on AIM will be made to the London Stock Exchange for a total of 42,000,000 new Galileo Shares to be admitted to trading on AIM being the Ordinary Share Consideration and the Reimbursement Share Consideration which rank pari passu to the existing ordinary shares in the Company. It is expected that Admission will become effective and that dealings in the new Galileo Shares will commence at 8.00 a.m. on 22 October 2020.

Following the issue of the Ordinary Share Consideration and the Reimbursement Share Consideration, the Company’s total issued share capital will consist of  Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares.

On Admission, the figure of 816,776,193 Ordinary Shares (the “Enlarged Share Capital”) may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Galileo under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.