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(Alliance News) - Galileo Resources PLC on Friday said it has raised GBP500,000 for its Zambian projects through a share placing.
Galileo, which operates the Star Zinc mine and the Kashitu silver, zinc and lead project, both in Lusaka, placed 125.0 million shares at 0.40 pence each. The placing price represents an 11% discount to its Thursday closing price of 0.45p per share.
The stock was trading 9.7% lower at 0.42 pence each in London on Friday morning.
The shares will also come attached with a warrant, to acquire a further share at 0.60p.
Galileo said: "The company intends to use the proceeds of the placing for general working capital towards advancing its Star Zinc and Kashitu projects in Zambia, including an application and related environmental and licence transfer activities for a small-scale mining permit for Star Zinc and exploration on Kashitu."
As part of the placing, Chair Colin Bird has subscribed for 5.0 million shares, and will accordingly hold 11% of the company's stock, or 60.4 million shares.
Non-Executive Director Richard Wollenberg has subscribed for 500,000 shares. He will in turn hold 7.2 million Galileo shares, a 1.3% holding in the company.
By Eric Cunha; ericcunha@alliancenews.com
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