JOHANNESBURG (miningweekly.com) – Aim-listed Galileo Resources has entered into a binding term sheet with BMR Group and agreed to advance $591 600 to BMR to enable it to exercise an option to acquire the Star zinc project, in Zambia.
BMR will establish a joint venture (JV) with Galileo over the project.
Galileo will be entitled to subscribe for a 51% equity stake in the JV through a newly created special purpose vehicle, Enviro Mining.
"This JV with BMR on the Star zinc property gives us a position in the very promising Star zinc resource close to Lusaka. The availability of primary zinc deposits is diminishing and Star zinc is open ended in both directions and at depth, with the strong possibility of other similar occurrences within the concession boundaries. Our first step will be to confirm the current non-Joint Ore Reserves Committee resource, followed by trenching and sampling of other areas and thereafter drilling," commented Galileo chairperson and CEO Colin Bird.