Galileo Mining Gets Farm-In Payment Of $5M From MinRes

Galileo Mining Ltd (ASX: GAL) has received the Tranche 1 payment of $5M under its farm-in and joint venture agreement with Mineral Resources Ltd (ASX: MIN) (MinRes).

This cash payment bolsters the funds available to Galileo to undertake exploration programs at both its Norseman and Fraser Range projects in Western Australia.

The Tranche 2 payment of $2.5M under the agreement is due on or before 30th May 2025.

Watch: Galileo Mining MD Brad Underwood Tells JustStocks Video Company Is Fully Funded As MinRes JV At Norseman Commences

30:70 joint venture

MinRes and Galileo have formed a 30%/70% joint venture for the exploration and mining of lithium on the Norseman tenements.

Read: Galileo Mining Gains After Signing Lithium Farm-In With Mineral Resources

MinRes can sole fund $15 million over four years to increase its stake in the JV to 55% (Stage 2).

At the completion of Stage 2, MinRes may elect to increase its stake in the JV to 70% by sole funding expenditure through to a Decision to Mine (Stage 3).

“Incredible depth of experience”

Galileo Managing Director Brad Underwood said: “With completion of the MinRes lithium joint venture agreement, lithium exploration will now begin at the Norseman project.

 “MinRes have an incredible depth of experience in the lithium business and have secured the rights to work on our untested lithium potential at Norseman.

 “In return Galileo shareholders will benefit from a focussed program of lithium exploration while the Company continues to concentrate on the extensive potential for nickel, PGEs, and gold in the same region.”

Norseman exploration drilling

About 2,700 metres of RC drilling was undertaken in April/May with the aim of identifying mineralisation related to geophysical anomalies.

Galileo intersected sulphide minerals in a variety of geological settings including as disseminated sulphide within ultramafic and mafic units.

Multiple drill intersections in ultramafic and mafic rocks contained anomalous palladium and platinum results.

The most prospective result from the recent round of drilling was received from NRC498.

This chargeable response will be the subject of follow-up drill testing scheduled for August.

Cyclical exploration strategy

Underwood added: “Our recent drill results show more prospective palladium and platinum zones within close proximity to geophysical anomalies.

 “Our exploration strategy follows a cyclical pattern with campaign drilling, review and interpretation of results, integration of new information, and then more drilling.

 “We believe this cycle of exploration activity gives us the best opportunity of making further discoveries in a fundamentally unexplored tenement package.

 “Follow up drilling is now being planned with the next round of drilling scheduled for August.”

 

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