Galileo Resources plans to raise £2.0mln in placing to help fund development of Kalahari Copper Belt

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Galileo Resources PLC (LON:GLR) said it plans to raise about £2.0mln, before expenses, via a placing and will use the majority of the proceeds to fund the next stage of exploration development on its copper/silver licences in the Kalahari Copper Belt of Botswana.

The AIM-listed company will place 133.66mln shares with retail investors at a price of 1.50p, a discount of about 10.7% from the closing share price of 1.68p on May 28.

“The net proceeds from the placing will be used to intensify the drilling programme in the Kalahari Copper Belt of Botswana and do all necessary to keep the licences in good standing,” said chief executive Colin Bird.

This includes any expenditure required to keep nine of the 24 Kalahari licences, which remain subject to a conditional sale agreement with Sandfire Resources Ltd, in good standing until the transaction has been completed.

READ: Galileo Resources ties up with Sandfire Resources in Botswana asset deal

The remainder of the funds will be used to progress the Kashitu project and to provide the company with additional working capital.

“We are currently evaluating the Kashitu zinc project near Kabwe in Zambia and intend to commence drilling in July this year,” said Bird. “We continue to evaluate new business opportunities which are advanced, good value and are able to benefit from the improving price fortunes of a number of metals.”

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