Galileo Resources has received confirmation that all requirements for Afrimat Limited to buy the Vermiculite Mining Right from Glenover Proprietary Limited have been satisfied, and that a consideration of £523k in cash for the Vermiculite Mining Right has been decided.
Through Galagen Proprietary Limited, Galileo Resources owns a 29% direct and a 4.99% indirect stake in Glenover. The ‘Glenover share sale agreement’ entitles the company to an additional £5.33 million.
The consideration for the sale will be paid in a mix of cash and Afrimat shares.
Half of the sale shares consideration will be split into Afrimat shares and South African dollars, at the discretion of Afrimats shareholders. The remainder will be split into Afrimat shares and cash at the discretion of the sellers.
Colin Bird, Chairman and CEO of Galileo Resources has sacrificed the bonuses of 1.5% of the gross proceeds of the Glenover Agreements that were given to him by Glenover whilst he was director of Glenover and these amounts will be added to the transaction awards already disclosed.
Galileo Resources were trading up 7.6% to 1.05p after the conditions of the sale being met by Afrimat Limited.
“I am pleased that the Company has received confirmation that all conditions to acquire the Vermiculate Mining Right have been met and £523K is now due to the Company. This is a further favourable step in the progressive sale of the Glenover Asset. The funds will be employed in releasing value from our lithium project in Zimbabwe and Copper-Gold projects in Southern Africa,” said Colin Bird.