Last checked at 10 Sep 2012 07:00
For immediate release 10 September 2012
Galileo Resources Plc ("Galileo" or the "Company") Update on Due Diligence on Galileo's Acquisition of Rare Earth International's Rare Earth Opportunities
Galileo Resources Plc, the AIM-quoted emerging African Rare Earth exploration company, is pleased to announce with reference to the Heads of Agreement ("HoA") (announced 25 July 2012) with Rare Earth International Limited ("REI") that it has completed the due diligence review on the three rare earth projects in Zambia, Mozambique and Spain to its satisfaction in all respects except for the confirmation of the tenure, over the Nkwomba Hills rare earth deposit in Zambia, held under Large Scale Prospecting Licence No. 12198-HQ-LPL (the "Nkombwa Licence").
The licence administration centre (the "Cadastre") of the Zambian Mines Development Department is currently not releasing tenure licence documents for due diligence or any other purpose as the Ministry of Mines and Mining Development (the "Ministry") until recently had a moratorium in place on all licences held on record in order to clear various irregularities that have been "piling up for years".
The Galileo board has a recent written opinion from the Ministry stating inter alia that it is the Ministry of Mines Judgment that (inter alia) the Nkwomba Licence is the sole Valid Mining Right over the entire area covered by the Nkombwa Licence, including the Nkombwa Hills rare earth deposit.
The Company's board, having given due regard to the due diligence completed and the aforementioned official opinion on tenure, has conditionally approved the issue and allotment to REI of 5.25 million Galileo ordinary shares, subject to the Cadastre releasing the title documentation and confirmation that Nkombwa Licence is the sole valid Mining Right. A further announcement will be made as and when the shares are issued.
In view of the aforementioned delays, the parties to the HoA have agreed through an amendment agreement to the HoA, to extend the times, as appropriate, for title due diligence and other time-related clauses in the HoA.
The Company will update its shareholders on the outcome of the physical resolution of the Ministry and the moratorium.
For further information, please contact:
Colin Bird Tel +44 (0)20 7581 4477
Chairman & CEO
Andrew Sarosi/Robin ("Jock") Harmer Tel +44 (0) 1752 221937/+27 (0) 12 997 1058
Executive Director/Technical Director
Beaumont Cornish Limited, Tel +44 (0)20 7628 3396
Nominated Advisor and Broker
Roland Cornish/James Biddle
Shore Capital Stockbrokers Limited Tel +44 (0)20 7408 4090
Joint Broker
Jerry Keen/Toby Gibbs
Bishopsgate Communications Tel +44 (0)20 7562 3350
Nick Rome/Anna Michniewicz/Ivana Petkova