Galileo Resources signs cooperation and project development agreement with Jubilee Metals

(Sharecast News) - Exploration company Galileo Resources said on Thursday that it has inked a conditional cooperation and project development agreement with Jubilee Metals in relation to the Molefe copper project in Zambia.

Galileo said the collaboration would combine its geological expertise with Jubilee's operational and processing capabilities, supporting resource definition drilling, mine management and the design of an onsite processing solution. It also marks the launch of a wider initiative to identify and develop copper projects in Zambia with nearterm production potential.

Under the terms, Galileo will fund a $700,000 exploration and resource programme at Molefe, giving it the right to earn up to a 23.75% stake in the project holding compan, while Jubilee will retain 71.25%, and the remaining 5% will be held by a local partner.

The AIM-listed group said the collaboration positioned it well to accelerate Molefe's development and pursue additional opportunities in Zambia.

Chief executive Colin Bird said: "We believe that this collaboration agreement provides a unique skill set to explore the smaller mining opportunities well beyond concept but sub-definition.

"We feel that there are many opportunities within the conventional copper belt geology to discover small to medium-sized mining propositions to assist tomorrow's high demand for copper."

As of 0850 GMT, Galileo shares were down 0.65% at 0.77p.

Reporting by Iain Gilbert at Sharecast.com