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.