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LONDON (Alliance News) - Galileo Resources PLC said Wednesday it has completed a 100.0 million share placing to raise GBP500,000 to advance its Star zinc project in Zambia.
The shares were priced at 0.50 pence each, a 14% discount to the closing mid-market price of 0.58 pence on Tuesday. Shares in Galileo were down 9.8% at 0.52 pence on Wednesday morning.
The proceeds of the placing will be used for general working capital, as well as for the advancement of Star, including the production of an independent ore resource estimate and the application for a small-scale mining permit.
The money will also be used for block modelling and preliminary put design.
Shard Capital Partners LLP brokered the placing and has been granted warrants to subscribe for 3.0 million shares in Galileo as an exercise price of 0.75p per share.
Galileo Chair Colin Bird said: "Following the positive drill results and significant conceptual grade-tonnage estimate for Star zinc, announced November 2018, the company has completed a placing to enable it to do all things necessary, as outlined above, to advance and add further value to what is undoubtedly a significant project with potential for early production.
"The directors believe the potential ore at Star zinc lends itself to a simple trucking operation for parties looking to enhance their feedstock with high-grade zinc ore and early-stage discussions have started with potential off-take partners."
Bird has subscribed for 6.0 million shares in the placing, taking his holding to 55.4 million shares, or 14% of Galileo's enlarged share capital. Non-Executive Director Richard Wollenberg subscribed for 600,000 shares, which bring his holding to 6.7 million shares, or a 1.7% stake.
