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Galileo Resources set to raise £300,000 in placing

Last updated: 09:48 29 Jan 2015 EST, First published: 10:48 29 Jan 2015 EST

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Rare earths and gold explorer Galileo Resources (LON:GLR) announced plans to raise £300,000 via a placing of shares for working capital and so it can kick off exploration for copper and gold in Nevada.

The cash call, which will see 10mln shares issued at 3p each, is subject to the approval of shareholders of the firm's capital reorganisation plans announced yesterday.

The firm proposes to subdivide  around 114.5mln shares into one share of 0.1 pence and one deferred share of 4.9 pence each and a  general meeting will be held on February 13 this year, the firm said.

The reason behind the move is so it can create a differential between the nominal value of the firm's shares and their market price to allow for future share issues

On Wednesday, Galileo also announced the potential sale of its stake in the Glenover prospect in South Africa to partner Fer-Min-Ore Proprietary for US$4mln.

Galileo chairman Colin Bird said the Glenover phosphate project had now been advanced with Fer-Min-Ore to the point where significant new funds together with specific industry expertise were required.

Galileo shares were unchanged at 3.625p each.

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

Colin Bird, Chairman & CEO of Galileo Resources (LON:GLR), tells Proactiveinvestors that the preliminary economic assessment (PEA) is good news and shows that the Glenover project "works". Colin now has his sights set on a drill programme for Glenover in the next couple of months and then to...

on 03/11/2013