London-listed Galileo Resources has confirmed receipt of a second payment totalling R48-million, or £2.1-million, from JSE-listed diversified miner Afrimat in its option to buy shares in Glenover Phosphate.
The agreement between the companies signed in December 2021 entailed Afrimat exercising an option to acquire Glenover through shares and shareholder loans, in which Galileo had a 30% direct and 4.9% indirect interest through a company called Galagen.
Galileo expects to shortly receive the last payment totalling R5.7-million, or £250 000.
The total purchase consideration for the Glenover acquisition was R300-million, or £13.3-million.
The Glenover mine is located 90 km north-west of Thabazimbi, in South Africa’s Limpopo province. It has reserves of phosphate, vermiculite and rare earths.