Galileo Resources said completion has occurred on the $3 million sale of its subsidiary Virgo Business Solutions to Metal Capital Exploration, a wholly owned unit of ASX-listed Sandfire Resources, which acted as purchaser guarantor.
The AIM-listed mineral exploration company plans to use the proceeds to advance its existing project portfolio and to fund working capital for corporate costs and new business activities.
Galileo entered the share purchase agreement on 15 June, covering two licences in Botswana's Kalahari Copper Belt, and confirmed on 18 September that all conditions precedent had been met.
The deal also carries a contingent Success Payment of $20 million to $80 million, payable within 30 days of Sandfire announcing a qualifying JORC Ore Reserve containing at least 400,000 tonnes of contained copper, with the payment scaling up to $80 million above 750,000 tonnes.
Metal Capital has committed to spend $4.5 million on exploration over three years, including $2.25 million within the first 18 months, and to complete at least 4,000 metres of drilling by 31 December, subject to approvals.
Galileo's group accounts to 31 March 2025 carried the Botswana assets at £1.19 million, with Virgo recording an attributable loss of £117,000 for that year; the company expects to book a profit on disposal in its audited accounts for the year ending 31 March 2027.