Katoro Gold PLC - Fundraise
(Registration Number: 9306219)
Share code on AIM: KAT
("Katoro" or "the Company")
"Katoro is pursuing a major chonolith type nickel sulphide discovery at Haneti, however Haneti is not just nickel focused and recent work has identified significant potential for Platinum Group Metals (notably Palladium), gold, copper, lithium and rare earth elements.
"Haneti is a large-scale polymetallic licence area and we are now also assimilating the historic information in respect of other metals and minerals and developing low cost work programmes to investigate the highest impact opportunities efficiently.
"We look forward to providing further updates to the market in respect of the highly prospective Haneti licence."
· Katoro has raised
· Each Financing Share has an attaching warrant to subscribe for a further new Ordinary Share at a price of 1.5p, with a life to expiry of 2 years from the Financing Shares admission to trading on AIM ('Admission'), creating 10,000,000 new warrants ('Financing Warrants');
· Kibo Energy PLC ('Kibo'), the Company's majority shareholder, has participated in the Fundraise for
· The Fundraise will enable the Company to continue to progress the Haneti project ('Haneti' or the 'Project') and provides general working capital;
· At Haneti, the Company is targeting a chonolith nickel sulphide deposit and the maiden drill programme will be targeting sulphide mineralisation, which if confirmed will be a highly positive outcome;
· Haneti is currently 75% owned by Katoro, with 25% held by Power Metal Resources plc (LON:POW) ('POW') and POW has the right by
· The Company currently has 20m warrants outstanding, including 10m held by POW exercisable at 1.25p and 10m held by participants in the Fundraise exercisable at 1.50p; and
- Should all warrants be exercised, the Company would receive an additional
Background to the
Katoro has a 75% interest in Haneti, a highly prospective, high-grade nickel sulphide asset in
The Company and POW have been undertaking a review and analysis of all historic work completed on the 5,000 sq. km polymetallic Project and believe that it could host a chonolith type nickel sulphide deposit. Previous work undertaken, totalling approximately
In 2012/13, the
Haneti lies within the ground area covered by the HIUC and, following the findings above, was subject to an independent geochemical interpretation, which identified the Mihanza Hill area as a prime drill target for nickel, copper and PGM mineralisation. The findings from the geochemical interpretation report and the in-house review thereon was sent to
A follow up extensive soil sampling programme was then undertaken, the results of which were announced by Katoro on
At the primary target, Mihanza Hill, a high magnetic anomaly was modelled using a 3D inversion modelling technique to better understand how the magnetic signature varied with depth. The results indicate that there is a considerable 'root' to the Mihanza Hill ultramafic outcrop, which points to a large volume of rock that could have positive implications for the differentiation of nickel sulphide rich magmas and provides a large volume of nickel prospective target rock at this location.
Related Party Transaction
Kibo, the Company's majority shareholder is also a substantial shareholder as defined by the AIM Rules for Companies, and accordingly Kibo's participation in the Fundraise represents a related party transaction under Rule 13 of the AIM Rules. The independent directors of the Company, being
Admission and Total Voting Rights
Application will be made for the Admission of the Financing Shares, with such Admission expected to become effective on or around
Each Ordinary Share has one voting right. No Ordinary Shares are held in treasury. Accordingly, the total number of voting rights will be 179,555,462 and this figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, Katoro under the
Following the issue of the Financing Shares and Admission, Kibo will be interested in, in aggregate, 94,338,739 Ordinary Shares representing approximately 52.5% of the Company's then issued share capital and will be interested in 1,800,000 Financing Warrants.
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.katorogold.com or contact:
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+44 (0) 20 7409 3494
+44 (0) 1483 413 500
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+44 (0) 20 7236 1177
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Investor and Media Relations Adviser
This information is provided by RNS, the news service of the
Quick facts: Katoro Gold
Market Cap: £2.95 m
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