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Galileo receives first proceeds from Glenover sale

11th February 2022

By: Marleny Arnoldi

Online News Editor

     

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London-listed mining development Galileo Resources has received R50-million, or £2.4-million, in respect of the Glenover unconditional asset sale between Glenover Phosphate and JSE-listed Afrimat.

The company has also received royalties of $118 000, or £86 000, due under a Star Zinc sale agreement, from the first three shipments having been made.

A further $460 000, or £335 000, in royalties from more shipments is expected soon. The minimum royalty rate is 3% and increases by 1% for each $250 increase in the zinc price above $2 500/t, up to a maximum of 10%. 

Galileo CEO and chairperson Colin Bird says the company also expects a further £470 000 from Glenover’s conditional sale of the Vermiculite mining right and £4.78-million if Afrimat exercises its option to acquire Glenover.

Galileo has a 29% direct and 4.99% indirect interest in South Africa-based Glenover, held through Galagen Proprietary, which is Glenover’s black economic empowerment partner.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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