Aim-listed Galileo Resources has received confirmation that all conditions for JSE-listed Afrimat to acquire the Vermiculite mining right from Glenover have been met and that Glenover has elected for the Vermiculite mining right consideration to be paid in cash, of which R10-million (about £523 000) is due to the company.
As previously announced, Galileo has a 29% direct and 4.99% indirect investment in Glenover held via Galagen, which is Glenover's black economic empowerment partner, and is potentially owed a further R102-million, being its portion of the share sale proceeds owed under the Glenover share sale agreement, which is conditional on Afrimat exercising its option to acquire the Glenover shares.
The consideration will be settled in a combination of cash and Afrimat shares.
Galileo chairperson and CEO Colin Bird has waived, in favour of the company, the bonuses awarded to him by Glenover, in his capacity as a director of Glenover, of 1.5% of the gross proceeds of the Glenover agreements, and these amounts will be added to the transaction awards previously announced that will, at the determination of the company's remuneration committee, be paid as these transactions are successfully concluded.
“I am pleased that the company has received confirmation that all conditions to acquire the Vermiculate mining right have been met and [that] £523 000 is now due to the company.
“This is a further favourable step in the progressive sale of the Glenover asset. The funds will be employed in releasing value from our lithium project in Zimbabwe and copper/gold projects in Southern Africa,” Bird comments.