Galileo Resources PLC Regulatory News (GLR)

17 April 2019

Galileo Resources Plc

("Galileo" or "the Company")

Placing

Galileo Resources Plc is pleased to announce the Company has today completed, in conjunction with Shard Capital Partners LLP ("Shard") , a placing with institutional and retail investors of 100,000,000 new ordinary shares ("Placing Shares") of 0.1p each (the "Ordinary Shares") at a placing price of 0.50 p (the "Placing Price") per Placing Share to raise £500,000, before expenses (the "Placing"), subject to admission to trading on AIM ("Admission"). The Placing Price is at a discount of approximately 13.8% compared to the closing mid-market price of 0.58p yesterday. The Company intends to use the proceeds of the Placing for general working capital and towards advancing its Star Zinc project ("Project") in Zambia, including producing an independent ore resource estimate, block modelling/preliminary pit design, and application for a small-scale mining permit.

Colin Bird, Chairman of Galileo Resources, said, "Following the positive drill results and significant conceptual grade tonnage estimate for Star Zinc, announced on 14 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 that 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."

In connection with the Placing, the Company has granted Warrants to Shard to subscribe for 3,000,000 Ordinary Shares at an exercise price of 0.75p per share. The Warrants may be exercised at any time in the period expiring on the second anniversary of Admission of the Placing Shares.

 As part of the Placing, Colin Bird, the Company's Chairman, and Richard Wollenberg, the Company's Non-Executive Director, have respectively subscribed for 6,000,000 and 600,000 Placing Shares. Accordingly, Colin Bird will hold 55,435,000 Ordinary Shares representing 13.70% of Galileo's enlarged issued share capital and Richard Wollenberg will hold 6,721,341 Ordinary Shares representing 1.66% of Galileo's enlarged issued share capital following the Placing.

The Placing Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares. Application will be made for the Placing Shares to be admitted to trading on AIM and admission is expected to take place on or around 2 May 2019.

Following the issue of the Placing Shares, the Company's issued share capital will total 404,596,562 Ordinary Shares, with voting rights. Shareholders in the Company may use this figure as the denominator for the calculation, by which they would determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014. You can also follow Galileo on Twitter: @GalileoResource

For further information, please contact: Galileo Resources PLC

This information is provided by RNS

The company news service from the London Stock Exchange

The following information relating to the transaction has been filed with the FCA in accordance with Article 19(1) of the Market Abuse Regulation,

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