The AIM-listed miner said it had executed a heads-of-agreement with BMR Group to acquire the Kabwe Residual Rights in Zambia, which included the Kabwe mining license, for an aggregate of around £275,000 through a mixture of cash and Galileo shares.
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The residual rights include the prospective Kashitu zinc prospect, which the company said was in a “historically large” zinc mining area.
The acquisition also includes an additional 5% stake in the Star Zinc project, which would take Galileo’s share of the project to 95%, with the remainder owned by the Zambian government.
Andrew Sarosi, director of Galileo, said the Kabwe acquisition would “complement the Star Zinc project” adding that initial exploration would focus on “identifying large zinc oxide and willemite -mineralised deposits”.
Shares were up 1.3% at 1.1p.