LONDON Stock Exchange-listed Galileo Resources is set to acquire a 51% stake in BC ventures, the owner of a highly prospective lithium project in south-western Zimbabwe and two gold licences through its wholly owned Zimbabwe subsidiary Sinamatella Investments (Private) Limited.
RONALD MUCHENJE
The agreement, signed in January this year, will see Galileo forking out US$1.5 million. The target is to explore for resources to support the development of a large-scale mine.
The gold licences adjoin and enclose a number of small-scale gold mines on pre-existing mining permits, providing the opportunity to integrate the production from these operations.
In an update on the agreement, the company said on 4 March 2022, Galileo entered into a deed of assignment with Cordoba and BC Ventures under which Cordoba assigned all its rights and obligations under the principal agreement to Galileo for US$198 000 which is being settled by the issue of 13 741 609 new ordinary Galileo Resources shares which will rank pari passu with existing Galileo Resources shares.
“Galileo Resources plc is pleased to provide details regarding an assignment agreement entered into on 4 March 2022 (the ‘Deed of Assignment’) which assigns to Galileo an option granted under an agreement dated 21 January 2022 between BC Ventures and Cordoba Investments Limited (the ‘Principal Agreement’) to acquire a 51% interest in BC Ventures Limited (‘BC Ventures’) (the ‘Option’). BC Ventures is the owner of a highly prospective lithium project in south-west Zimbabwe (the ‘Kamativi Lithium Project’) and two gold licenses (the ‘Bulawayo Gold Project’) close to Bulawayo (the ‘Projects’) through its wholly owned Zimbabwe subsidiary Sinamatella Investments (Private) Limited,” the company said.
The Kamativi Lithium Project comprises Exclusive Prospecting Order (EPO) 1782 and lies on the Kamativi Belt directly adjacent to, and along strike from the historic Kamitivi tin-tantalum mine which operated from 1936 to 1994, where there are active plans by the Zimbabwe Mining Development Corporation to produce lithium from mine tailings.
First-pass grab sampling within the project area by GeoQuest, who are a fully independent southern and Central African-based geological consultancy and contracting group, has confirmed lithium- bearing minerals in pegmatites based on preliminary AAS and XRD results. The ground is also considered highly prospective for pegmatite-hosted lithium and associated mineral, past exploration having focused on tin and tantalum.
The Bulawayo Gold Project comprises EPO 1783 and EPO 1784 and covers a large 1 300 square kilometre licence area near Bulawayo with extensive greenstone belt rock formations that are host to many small to mid-size quartz reef gold mines and deposits in Zimbabwe.
The principal agreement was entered into between Cordoba and BC Ventures on 21 January 2022.
Under the agreement, Cordoba was given an exclusive option to earn a 51% interest BC Ventures by making a payment of US$50 000 within 10 days of signing (which has been paid) and a further US$100 000 within 45 days of the principal agreement which has not been paid and wass due to be paid by 7 March 2022.
“ .. spending a minimum of US$1.5 million (net of any due diligence, legal, or administrational fees) on exploration works on the Projects within a maximum of 24 months. Once the option has been exercised, BC Ventures and its projects shall be re-valued by an independent third party to be agreed by both parties prior to any new money being raised or injected into the company. The original shareholders of BC Ventures will subsequently contribute pro-rata to exploration funding above and beyond the initial US$1.5 million or dilute their respective shareholding in BC Ventures and the projects via a straight-line dilution formula,” the company said.
