Galileo Resources secures potential US$83 million Botswana copper deal with Sandfire subsidiary
Sale of Botswana prospecting licences delivers US$3 million upfront, with future success payments linked to major copper resource milestones
Galileo Resources Plc has entered into a conditional agreement to sell its Botswana copper exploration interests to Metal Capital Exploration Limited, a subsidiary of Sandfire Resources Limited, for up to US$83 million.
The copper and critical battery minerals explorer announced it has signed a conditional share purchase agreement to sell its wholly owned subsidiary, Virgo Business Solutions (Pty) Ltd. Virgo owns the Botswana prospecting licences PL039/2018 and PL040/2018.
Under the terms of the agreement, Galileo will receive an upfront payment of US$3 million upon completion of the transaction. The deal also includes the possibility of a one-off success payment ranging from US$20 million to US$80 million, depending on the size of a future qualifying copper ore reserve identified on the licences.
Galileo Chairman Colin Bird said the transaction aligns with the company’s strategic priorities and allows it to focus resources on its core projects in Zambia and Zimbabwe.
“Metal Capital is a wholly owned subsidiary of Sandfire, with whom Galileo has an existing relationship in Botswana. From Galileo’s point of view, the transaction makes strategic sense as our highly prospective portfolio and our people resources are primarily located in Zambia and Zimbabwe, so we are better equipped to focus on and advance projects there,” Bird said.
He added that the structure of the transaction provides immediate value to shareholders while retaining significant upside should the Botswana assets deliver on their exploration potential.
As part of the agreement, Metal Capital has committed to spend US$4.5 million on exploration activities across the prospecting licences within three years of completion. Of this amount, US$2.25 million must be spent within the first 18 months, while US$2.7 million is earmarked specifically for drilling and assaying activities.
The company has also committed, subject to obtaining the necessary approvals, permits and consents, to complete at least 4,000 metres of drilling on the licences by 31 December 2026.
A success payment will become payable to Galileo if the first qualifying ore reserve reported under the JORC Code contains at least 400,000 tonnes of contained copper. The final payment amount will depend on the size of the reserve and the thresholds achieved under the agreement.
Completion of the transaction remains subject to several conditions, including ministerial approval from Botswana’s Ministry of Minerals and Energy, any required approvals or confirmations from the Australian Securities Exchange (ASX) and AIM market regulators, and clearance from Botswana’s Consumer and Competition Authority, or confirmation that such approval is not required.
