Skip to content
Business Company News, Finance Investment

Galileo Mining Signs Lithium JV/Farm In Agreement with Mineral Resources

Chapter One Advisors 3 mins read

Highlights

Farm-in and joint venture agreement (“Exploration JVA”) executed with a 100% owned subsidiary of Mineral Resources Limited (ASX: MIN) (“MinRes”) whereby, subject to completion terms:

  • Galileo sells 30% of its lithium rights on the Norseman Project (“Project”) tenements2 for a purchase price of $7.5m (“Stage 1”)
  • $5m of the purchase price to be paid within five days of execution of the Exploration JVA
  • $2.5m of the purchase price to be paid within 12 months of the execution of the Exploration JVA
  • Galileo and MinRes form a 70% Galileo / 30% MinRes joint venture (“JV”) to explore for lithium on the Project tenements
  • MinRes can sole fund $15m of expenditure over four years to increase its stake in the JV to 55% (“Stage 2”)
  • At the completion of Stage 2, MinRes may elect to increase its stake in the JV to 70% by sole funding expenditure through to a Decision to Mine (“Stage 3”)
  • After the Completion of Stage 3, MinRes and Galileo will enter into a separate Mining Joint Venture Agreement (“Mining JVA”) on substantially the same terms and conditions as the Exploration JVA
  • Galileo may elect to contribute to Development Costs under the Mining JVA or elect to convert its interest into a royalty

Galileo retains ownership of the Project’s tenements and all rights to nickel, PGEs, and all minerals other than those contained within lithium bearing pegmatites within the Project area

Mining Lease 63/671, which contains the 17.5Mt Callisto PGE-nickel resource and significant exploration potential, is not a part of the Exploration JVA

Galileo Mining Ltd (ASX: GAL, “Galileo” or the “Company”) is pleased to announce that its wholly owned subsidiaries (“Norseman Resources Pty Ltd” and “Ganymede Resources Pty Ltd”) (together “Galileo") have entered into a farm-in and joint venture agreement (“Exploration JVA”) with ACN 654 242 690 Pty Ltd (“MinRes Subsidiary”), a wholly owned subsidiary of Mineral Resources Limited (“MinRes”), under which the Company will, subject to the satisfaction of the completion terms, sell 30% of all lithium rights held by Galileo on the Norseman tenement package (“Tenements”) for $7.5m cash consideration (the “MinRes Transaction”).

Galileo’s Managing Director Brad Underwood commented;

“We are excited to add a lithium exploration joint venture to our ongoing exploration programs for PGEs and nickel at our Norseman Project.

The Norseman project has excellent lithium potential and is strategically located in the world’s most prospective region for lithium. The project’s outstanding location relative to existing infrastructure provides a short cut to development for any lithium resources discovered through the joint venture.

Galileo will benefit from a focussed program of lithium exploration by MinRes, one of Australia’s pre-eminent lithium companies, as well as increasing our cash reserves to aggressively pursue other high value resource discoveries at both our Norseman and Fraser Range projects.

With $5 million of additional funding to be received within five days of execution of the agreement, a further $2.5 million to be received within 12 months, and $10 million in the bank 4, Galileo is fully funded to undertake all of its planned exploration programs.”

From Completion, MinRes Subsidiary and Galileo will form a 30% / 70% unincorporated joint venture. MinRes Subsidiary has the ability to increase its stake to 55% by sole funding an additional $15m of exploration expenditure on the Tenements over the 4 years following completion. MinRes Subsidiary has the further ability to elect to increase its stake to 70% by sole funding expenditure through to a Decision to Mine. Upon MinRes Subsidiary earning a 70% interest, Galileo must elect to either remain in Joint Venture and contribute to Development Costs or convert its interest into a royalty.


Contact details:

David Tasker 
Chapter One Advisors 
T: 0433 112 936
E: dtasker@chapteroneadvisors.com.au 

Media

More from this category

  • Finance Investment
  • 21/06/2024
  • 19:52
BTCC Exchange

BTCC Exchange Celebrates 13 Years with Major Milestones and Exciting New Features

VILNIUS, Lithuania, June 21, 2024 (GLOBE NEWSWIRE) -- BTCC Exchange, a leading global cryptocurrency platform, proudly celebrates its 13th anniversary this June, marking over a decade of innovation and commitment to the community. The exchange has achieved major milestones in registered users and trading volume and has new features in store for its users.A Media Snippet accompanying this announcement is available by clicking on this linkIn its 13th year, BTCC reached significant milestones, witnessing its 4th Bitcoin halving with futures trading volume hitting 16.2 billion USDT on April 20, 2024, from a total registered user base of 2.8 million. To…

  • Business Company News, Energy
  • 21/06/2024
  • 12:35
CIMIC Group

CIMIC’s UGL awarded $125m electrical maintenance contract by Western Power

CIMIC Group company UGL will deliver a major program of maintenance and upgrade works for Western Power, a Western Australian State Government owned corporation…

  • Contains:
  • Finance Investment
  • 20/06/2024
  • 23:52
Intech

Intech Launches U.S. Small-Mid Cap Enhanced Plus Strategy with Over a Half Billion in Initial Funding

WEST PALM BEACH, Fla., June 20, 2024 (GLOBE NEWSWIRE) -- Intech, a global quantitative equity manager, proudly announces the launch of its U.S. Small-Mid Cap (SMID) Enhanced Plus strategy, backed by a substantial initial investment exceeding half a billion dollars. This new mandate underscores Intech’s sustained growth and strategic innovation, setting Intech U.S. Small-Mid Cap Enhanced Plus strategy apart from competitors with its unique approach and competitive fee structure.1Key Differentiators in a Competitive MarketDistinctive Alpha Source: Aims to use stock price volatility and correlations to deliver an uncorrelated alpha source for portfolios.Enhanced Indexing: Moderate, systematic deviations from the index seek…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.