United Kingdom-based Galileo Resources PLC (AIM:GLR) said it has been granted an option to acquire a 51% stake in the Kamativi lithium project and the Bulawayo gold project, marking its first move into Zimbabwe, Proactive investors reports.
According to the agreement, Galileo can earn an initial 51% interest in the two projects by spending US$1.5mn (£1.1mln) on exploration and evaluation by 21 January 2024 and paying US$100,000 to BC Ventures Ltd by 7 March 2022.
Galileo will also issue 13.7mln shares to settle £150,000 due to Cordoba Investments Ltd for all of its rights and obligations relating to the projects.
Kamativi is adjacent to the historic Kamitivi tin-tantalum mine. The mine operated from 1936 to 1994 and Zimbabwe Mining Development Corp is currently planning to produce lithium from mine tailings.
“This is a significant investment for Galileo, in that we have an option to acquire a controlling interest in what we consider a highly prospective lithium project in Southwest Zimbabwe,” said chairman and chief executive Colin Bird.
“The project is adjacent to the Kamativi mine, which produced tin for many years, closing in 1994. The pegmatites in the area are known to contain lithium bearing minerals, as well as tantalum and tin and the pegmatites will be the focus of our exploration programme.”
Galileo said there is extensive historical raw and exploration data on the Kamativi lithium project and drill testing will start as soon as targets have been prioritised.
“In addition, we have an option to acquire a controlling interest in two gold licences, which are in the midst of small producing gold mines near Bulawayo, where we have a good understanding of the structural controls and believe there is a propensity for a significant new gold discovery, notwithstanding the opportunity to small scale mine in the short term,” said Bird.
“This is our first foray into Zimbabwe, where foreign investment is being welcomed and the country has excellent potential in many commodities as well as good infrastructure support.”
Galileo Resources currently has its main focus is on the Star Zinc Project in Zambia close to Lusaka, where it has reported that significant zinc intersections have been made in a recent drilling program and the fundamentals point towards a developing zinc mine. – Proactive investors.