Joint Venture Agreement for Copper Exploration in Zambia

Galileo Resources, a London-listed miner, announced a joint venture agreement with Cooperlemon Consultancy for copper exploration in Zambia. This move has resulted in a positive response from the market, with Galileo Resources' shares rising by 8.5% to 1.27 pence.

Exploration License and First Phase

The joint venture focuses on Galileo Resources' large-scale exploration license 28001-HQ-LEL, located in the northeast of Zambia along the Angolan-Zambian border. In the first phase of the agreement, Galileo Resources will acquire a 65% interest.

As part of the arrangement, Cooperlemon will receive an immediate payment of $230,000 million. Galileo Resources will also allocate a minimum of $750,000 for exploration expenditure over the next 18 months. Additionally, 2.5 million shares worth £29,375 ($37,095) will be issued to Cooperlemon. These shares are subject to a three-month lock-up arrangement and a further three-month orderly market arrangement.

Exploration Timeline

Within the next 60 days, initial fieldwork will commence to identify potential drill targets. The actual exploration is expected to begin in September or October.

Second Phase and Future Development

If the results from the first phase of exploration prove successful and demonstrate potential for future development of over 500,000 tons of contained copper (among other conditions), a second two-year exploration period, known as the second phase, will follow. Galileo Resources will fund this phase with a budget of $1.5 million.