JOHANNESBURG (miningweekly.com) – London-listed Galileo Resources on Friday said it had completed due diligence at the Nkombwa Hill rare-earth project, in Zambia, after confirming tenure.
The emerging rare-earth exploration and development company intended issuing 5.25-million shares at 5p or $0.08 a share to Rare Earth International (REI) following the findings that the large-scale prospecting licence was the sole existing exploration right over the Nkombwa Hill deposit.
Last year, Galileo entered into a heads of agreement with joint venture partner REI to earn an interest in the rare-earth project, but delays in the completion of due diligence ensued when the Zambian Mines Development Department’s administration centre declined to release key licensing documentation, owing to a moratorium on licences held.
A Zambia-based legal practise, contracted by Galileo, also found that the licence was in “good standing” with, and recognised by, the Zambian Ministry of Mines and Mineral Development.
"We are extremely pleased that the due diligence report is now finalised and that it confirms that the Nkombwa prospecting licence is in good standing and unencumbered,” said Galileo executive chairperson Colin Bird.