Sandfire to have a first right of refusal in relation to the acquisition of the 15 Kalahari Copper Belt Licences being retained by the Company (the “Excluded Licences”) (“ROFR: Excluded Licences”) for an aggregate consideration of US$3 million payable on the Settlement Date of which US$1.5 million will be paid in cash and US$1.5 million by the issue of 370,477 Sandfire ordinary shares to the Company (the “Consideration Shares”) at an issue price of A$5.227 per share, being the VWAP of the Sandfire share price for the 10 trading days prior to the date of signing the Licence Sale Agreement I) The Sale of licences and right of first refusal: the sale to Sandfire of 9 of the Company’s Kalahari Copper Belt Licences (the “Included Licences”) which the Company acquired in May and October 2020. The first agreement is a conditional licence sale agreement (the “Licence Sale Agreement”) which provides for Galileo Resources plc (“Galileo” or the “Company”) is pleased to announce that on 25 January 2021 it entered into two legally binding agreements with ASX listed Sandfire Resources Limited ( ASX:SFR) (“Sandfire”). US$1.5 million subscription into Galileo by Sandfire
To Sandfire Resources Ltd (“Sandfire”) and Sale of 9 Kalahari Copper Belt Licences for US$3 million The Company will provide a further update(s) on the Licence Sale Agreement as and when appropriate.This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR. Included Licences to be assigned to Sandfire at completion: Licence IDĮxcluded Licences to be retained by the Galileo group Licence ID Updated list of Included Licences and Excluded Licences. Note: given the limited exploration conducted on the Included Licences to date and the many years that it could take to establish an Ore Reserve, there can be no guarantee that any such Success Payment will be forthcoming. V) Removing the option for Sandfire to elect to pay the Success Payment under the Licence Sale Agreement by issuing Sandfire shares to Galileo which means the Success Payment if due will be paid in cash. Iv) PL 368/2018 which was due to expire on 30 September 2021 to be removed from the list of Included Licences to be transferred to Sandfire as this licence is, with the agreement of Sandfire, being relinquished and Iii) Sandfire’s US$4,000,000 Exploration Commitment under the Licence Sale Agreement to be reduce by the amount of the Reimbursed Exploration Expenditure Ii) Sandfire to at completion of the Licence Sale Agreement, reimburse Galileo up to US$500,000 of exploration expenditure incurred by Galileo in relation to licence obligations of certain Included Licences being transferred to Sandfire (the “Reimbursed Exploration Expenditure”) I) Change the long stop date for the meeting of the conditions from 31 July 2021 to 31 August 2021 The key commercial terms of the Variation Agreement are to make the following variations to the Licence Sale Agreement:
The Parties have agreed to amend the Licence Sale Agreement to facilitate the continuity of exploration expenditure on the Included Licences and to amend the list of Included Licences and Excluded Licences in accordance with the Variation Agreement. Unless indicated to the contrary defined terms in Galileo’s announcement dated 26 January 2021 in relation to the Licence Sale Agreement have the same meaning. Galileo Resources plc (“Galileo” or the “Company”) further to its announcement on 26 January 2021 is pleased to announce that on 30 July 2021 it entered into a variation agreement (the Variation Agreement) with ASX listed Sandfire Resources Limited ( ASX:SFR) (“Sandfire”) in relation to its conditional licence sale agreement (the “Licence Sale Agreement”) with Sandfire.
Update on Sale of Kalahari Copper Belt Licences to Sandfire Resources Ltd (“Sandfire”) This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.