Galileo Resources raises £0.5m to advance projects in Zambia

Galileo Resources has completed a placing of 125 million placing units with institutional and retail investors, it announced on Friday, comprising 125 million ordinary shares at a price of 0.4p, to raise £0.5m before expenses.

The AIM-traded firm said the units also comprised 125 million warrants to subscribe for ordinary shares at an exercise price of 0.60p per share.

It said the placing price was at a discount of around 8% compared to the closing mid-market price of 0.45p on Thursday.

“The company intends to use the proceeds of the placing for general working capital towards advancing its Star Zinc and Kashitu projects in Zambia, including an application and related environmental and licence transfer activities for a small-scale mining permit for Star Zinc and exploration on Kashitu,” the Galileo board said in its statement.

In connection with the placing, the company also granted 3.75 million warrants to its broker Shard to subscribe for ordinary shares at an exercise price of 0.60p per share.

The brokers warrants and the placing warrants could be exercised at any time in the period expiring on the second anniversary of admission of the placing shares, the board explained.

As part of the placing, company chairman Colin Bird and non-executive director Richard Wollenberg had subscribed for five million and 500,000 placing units each, respectively.

As a result, Bird would hold around 10.83% of Galileo's enlarged issued share capital, and Wollenberg would hold 1.29% following the placing.