By: OrePulse

Galileo Resources said all conditions required to complete the sale of its Botswana copper licenses have now been met, with the deal expected to close around September 30.

The London-listed company is selling its subsidiary, Virgo Business Solutions, which holds two copper prospecting licenses in Botswana's Kalahari Copper Belt. The buyer is Metal Exploration Capital, a subsidiary of Sandfire Resources, which trades on the Australian Securities Exchange and is also acting as guarantor for the purchaser under the agreement.

The transaction, first announced in June, includes an upfront payment of $3 million plus a contingent success payment of between $20 million and $80 million, depending on outcomes tied to the licenses after completion. Combined with the upfront payment, the total consideration could range from as little as $23 million to as much as $83 million, depending on how the contingent portion is ultimately calculated. Galileo said completion is expected "on or around September 30."

The Kalahari Copper Belt, which stretches across parts of Botswana and Namibia, has drawn a wave of exploration and acquisition activity in recent years as copper prices and demand for the metal have risen, with larger companies moving to consolidate ground held by smaller explorers. Sandfire's purchase of the Virgo licenses through Metal Exploration Capital fits that pattern, adding to its footprint in a region already home to several other copper projects at varying stages of exploration and development.

For Galileo, the sale lets it exit an asset held through the Virgo subsidiary in exchange for an upfront cash payment and the prospect of further payments tied to future success on the licenses, without having to fund additional exploration or permitting work itself.

Satisfying all conditions precedent clears the way for the deal to proceed to completion on the timeline Galileo has outlined. Conditions precedent in transactions of this kind typically include regulatory approvals, government consents and confirmation that no material change has affected the underlying licenses since the agreement was signed. Once the transaction closes, Sandfire, through its Metal Exploration Capital subsidiary, will take over responsibility for the two prospecting licenses and any future exploration decisions on the ground in Botswana.

Neither company has disclosed the specific outcomes that would trigger the higher end of the contingent success payment. However, such arrangements typically tie additional payouts to exploration results, resource definition, or a decision to advance toward mining on the acquired ground.