Galileo Clears Hurdles for Botswana Copper Licence Sale

Galileo Resources has cleared all regulatory and commercial hurdles to sell two Botswana copper licences to Sandfire Resources, paving the way for a deal to close by the end of this month. The licences are located in the Kalahari Copper Belt, which is experiencing increased exploration activity.

The licence transfer will allow Sandfire to expand its presence in Botswana and feed its Motheo production hub. For Galileo, the sale marks an injection of cash and a moment of derisking that was immediately rewarded by the market with a 7-12% share price increase.

The deal's contingent payout structure is based on the amount of contained copper found in the licences, with payments ranging from US$20 million to US$80 million triggered by a First Qualifying Ore Reserve declared under the JORC Code 2012. The buyer has committed to spend US$4.5 million on exploration within three years of completion.

Galileo's shares climbed roughly 7-12% on the news, with the company stating it will direct the US$3 million upfront payment towards its copper projects in Zambia and lithium interests in Zimbabwe. This marks a strategic shift away from the Kalahari Copper Belt, which Sandfire is consolidating around its Motheo hub.