- Galileo Resources shares rallied after signing a joint venture agreement with Statunga for a copper project in Zambia.
- The company is set to make two payments of US$200,000 to seal the deal.
- The mining company’s shares appear pretty attractive at current prices.
The Galileo Resources PLC (LON: GLR) share price rallied 8.25% after revealing that it had entered into a joint venture agreement with Statunga Investments Limited regarding the Luansobe Copper Project in Zambia.
The joint venture agreement gives Galileo the right to own an initial 75% interest in a special purpose company registered under Zambian laws. The company will then acquire all the technical information, assets and license about the Luansobe Project.
Investors cheered the agreement that will see Galileo pay an initial US$200,000 and the second payment of US$200,000 by 20 February 2022. The company will also issue 5 million shares to the Statunga worth about £350,000 based on yesterday’s closing price.
The deal allows Galileo to perform further due diligence during the initial JV period and could even cancel the deal in its entirety if they are not satisfied with their findings.
Galileo Resources plans to conduct a feasibility study by August 2023 after reviewing past exploration data and creating an effective drilling programme to test the extent of the copper mineralisation identified in previous drilling campaigns.
Colin Bird, Galileo’s Chairman and CEO, said: “We are very pleased with the addition of the Luansobe brownfield Project within the Zambian Copperbelt, with the Project situated directly along strike and in close proximity to the very large Mufulira mine, which has produced well over 9Mt of copper metal during its operations. The Project area has been tested by numerous drill holes in various campaigns from 1921 to 2007, with semi-continuous mineralisation reported along about 3km of strike and to at least 1,250m depth.”
“Historical reports suggest the potential for very significant copper resources of up to 20Mt @ 2.51% Cu. Galileo proposes to undertake a substantial drilling programme to update the reported resource to JORC-compliant status with the twin objective of delineating a near-surface copper-oxide deposit with early development potential and an underlying sulphide deposit for larger-scale development.”
Investors interested in its shares may find its current prices attractive since it just broke above a significant resistance level after today’s rally. However, we will likely get a pullback after today’s sharp rally.
*This is not investment advice. Always do your due diligence before making investment decisions.
Galileo Resources share price.
Galileo Resources share surged 8.25% to trade at 1.05p, rising from Wednesday’s closing price of 0.97p.
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