Aim-listed Galileo Resources has raised £500 000 through the placing of 100-million new shares at a price of 0.5p a share.
The proceeds will be used for general working capital, as well as for advancing its Star Zinc project, in Zambia. Specifically, the company plans to use the proceeds to produce an independent ore resource estimate for the project, complete a preliminary pit design and apply for a small-scale mining permit.
"Following the positive drill results and significant conceptual grade tonnage estimate for Star Zinc, the company has completed a placing to enable it to do all things necessary . . . to advance and add further value to what is undoubtedly a significant project with potential for early production. The directors believe the potential ore at Star Zinc lends itself to a simple trucking operation for parties looking to enhance their feedstock with high-grade zinc ore and early-stage discussions have started with potential offtake partners," chairperson Colin Bird said on Wednesday.
As part of the placing, Bird has subscribed for six-million placing shares. He will hold 13.07% of Galileo's enlarged issued share capital following the placing.
Nonexecutive director Richard Wollenberg has subscribed for 600 000 placing shares and will hold 1.66% of Galileo's enlarged issued share capital following the placing.