Why did the Galileo share price soar 9% on Tuesday?
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The Galileo Mining Ltd (ASX:GAL) The stock price enjoyed a positive session on Tuesday.
In early trading, shares of the cobalt and nickel explorer rose 9% to $1.74.
Galileo Mining’s share price has since declined, but remains up 3% at $1.64.
Why did Galileo Mining stock price jump 9%?
Investors pushed Galileo Mining’s share price higher this morning amid speculation that the company could be a takeover target.
According Francethe company has been singled out by fund managers as a target of battery metal miners IGO Ltd (ASX:IGO).
That wouldn’t be too much of a surprise given that IGO currently owns an 8.9% stake in the company. She has also worked closely with Galileo Mining’s largest shareholder, mining tycoon Mark Creasy.
Additionally, IGO is reportedly looking for ways to offset the drop in production from its Nova mine, which is relatively close to Galileo Mining’s Norseman project.
However, IGO is unlikely to move until the drill results are released. So, investors may have to wait patiently to see if anything materializes.
What is the Norseman Project?
The Norseman project, 100% owned by Galileo Mining, is located 10 km from the town of Norseman, Western Australia.
It contains a JORC cobalt-nickel resource and additional prospects with potential for copper, nickel and cobalt mineralization. Galileo notes that its tenure at Norseman includes exploration and prospecting licenses covering a total area of 306 km2.
Yesterday the company revealed it had started reverse circulation drilling at the Callisto discovery at Norseman, with a 4,000 meter program expected to last around five weeks.
Galileo CEO Brad Underwood is very optimistic about these drilling activities. He said:
The current drilling aims to extend the initial results with drilling designed at 50 meter spacing across strike to be followed by drill lines along strike to the north.
The broad prospective extent, combined with the thick and consistent mineralization drilled to date, indicates the potential for a large mineralized system. Approximately 20 holes will be undertaken in this round of drilling and we look forward to updating the market with the results of this exciting new discovery.
All eyes will be on these results in the weeks and months to come.