malvernmugadzikwa
Oliver Kazunga
Business Writer
UNITED Kingdom-based Galileo Resources intends to acquire a further 29 percent stake in lithium and gold projects in Matabeleland, Zimbabwe through a tweak to a deal agreed with BC Ventures early this year.
BC Ventures is privately owned and registered in the Bahamas and was established as a mineral exploration (prospect generator) company and remained dormant until March 7, 2022 when the Deed of Assignment was signed and had never previously traded or operated commercially and owns 100 percent of Sinamatella Investments (Private) Limited.
“The company further to its announcement of March 7, 2022 is pleased to provide details regarding an addendum dated August 9, 2022 to an agreement dated January 21, 2022 between BC Ventures and Cordoba Investments Limited (principal agreement) to acquire a 51 percent interest in BC Ventures which was assigned to the company on March 4, 2022 (Deed of Assignment).
“Under the Addendum, Galileo is to acquire a 29 percent shareholding in BC Ventures (the “Share Acquisition) for the issue of 50 million Galileo Resources plc shares, BC Ventures is the owner of a highly prospective lithium project in Southwest Zimbabwe (Kamativi Lithium Project) and two gold licenses (Bulawayo Gold Project) close to Bulawayo through its wholly owned Zimbabwe subsidiary Sinamatella Investments (Private) Limited,” said Galileo.
Outside Zimbabwe, the mining group which this year announced that it had started exploration works at the Kamativi Lithium and gold projects in Bulawayo, owns assets such as Kalahari copper belt, Kashitu project, Ferber project and the Glenover rare earth project among others.
Galileo chairman and chief executive officer Colin Bird said: “The issue of the consideration shares is at a premium to the current share price and subject to lock up arrangements.
“We look forward to working with the BC Ventures shareholders to unlock the Zimbabwean projects’ value.”
The mining sector is one of the major economic centrepieces expected to contribute significantly towards the attainment of Vision 2030 where the Government aspires to make Zimbabwe an upper middle income economy.
And it is anticipated that under the US$12 billion mining industry, lithium will contribute US$500 million and the figure will rapidly increase beyond 2023 as more lithium mines come on board and existing mines increase production.
Of the targeted US$12 billion mining economy, the gold sub-sector is expected to contribute US$4 billion.
Bongani Ndlovu