JOHANNESBURG (miningweekly.com) – Aim-listed Galileo Resources has executed a two-year term sheet with its joint venture partner Fer-Min-Ore (FMO) to advance the pursuit of a mining right for the Glenover phosphate/rare earth project, in Limpopo.
Galileo will fund the execution of the mining right application by way of a loan convertible to 4% of the equity in Glenover Phosphate – 2% on acceptance of the application by the Department of Mineral Resources and 2% on formal granting of the mining right.
Galileo's equity in Glenover may accordingly increase to 38% from 34%.
“The mining right will provide optionality to Glenover to pursue the best route for development of the project. We are currently testing various scenarios for development and will keep shareholders advised,” said Galileo CEO Colin Bird.
Minxcon has been appointed to manage the application.