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Galileo Resources completes St Vincent acquisition

Published: 02:40 15 May 2014 EDT

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Galileo Resources’ (LON:GLR) acquisition of Toronto-based St Vincent Minerals (SVM) is over the line, the potash and rare earths miner revealed.

The company has issued 26.2mln new shares at a strike price of 9p in exchange for all of SVM, which values the deal at £2.36mln (C$4.33mln).

It leaves SVM shareholders with around 23% of Galileo’s stock, with an eight-month lock-up period when they cannot sell the shares without Galileo’s written consent.

SVM’s Gabbs and Ferber gold-copper projects in Nevada, USA, attracted Galileo.

Brian Gavin, SVM’s founder, president and chief executive, is to become the chief executive of Galileo, taking over from industry veteran Colin Bird, who continues as chairman and joins the board of directors.

The company said its Glenover Rare Earths project in South Africa has advanced “to the point where strategic partners can be identified”.

Bird said: “We are pleased to have completed the acquisition of SVM, which provides Galileo with an advanced gold-copper project in the Gabbs property and a highly prospective Ferber project.

“There is a strong suggestion of new Carlin-style trends emerging in Nevada and Ferber is well positioned in this regard with similarities in geology and mineralisation.”

Galileo Resources releases "milestone" PEA for Glenover rare earth project

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on 03/11/2013