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Katoro Gold PLC - Haneti Polymetallic Project - Commercial Update

RNS Number : 1352O
Katoro Gold PLC
28 May 2020
 

Katoro Gold plc (Incorporated in England and Wales)

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

 

 

28 May 2020

 

Katoro Gold plc ('Katoro' or the 'Company')

 

HANETI POLYMETALLIC PROJECT - COMMERCIAL UPDATE

 

Katoro Gold plc (AIM:   KAT), the AIM listed gold and nickel exploration and development company, is pleased to provide an update in respect of commercial discussions relating to the Haneti polymetallic project (the 'Project').

 

BACKGROUND:

 

On 15 March 2019 Katoro announced an Investment and Option Agreement whereby Power Metal Resources plc (AIM:POW) (formerly African Battery Metals plc) could acquire up to a 35% interest in the Project.  This announcement may be viewed through the following link:

 

https://polaris.brighterir.com/public/katoro_gold/news/rns/story/rdp9o9r

 

After due diligence POW duly acquired a 25% interest in the Project on 15 May 2019 and held an option to acquire a further 10% through a payment to Katoro of £25,000 by 15 May 2020, with the option period subsequently extended to 31 May 2020 as announced on 15 May 2020. 

 

In recent months Katoro has received approaches with a view to earn-in, joint venture or other similar structures in respect of the Project, with a primary focus on the nickel sulphide potential.

 

It is apparent that to crystallise the interest shown into a potential commercial transaction, it is preferable, and possibly a requirement, for Katoro and POW to restructure ownership of the Project.

 

Katoro and POW have therefore agreed to continue to monitor the development of any potential commercial transaction(s), before any final agreement is agreed upon and to in lieu of this, extend POW's option to increase its holding in the Project to 31 August 2020. This will allow both parties the benefit of further discussions and to carefully consider all available options based on additional information.

 

Louis Coetzee, Executive Chairman of Katoro, said: 

 

"Katoro is in a very busy and positive period at present, particularly in respect of our work on the Blyvoor gold tailings project.  We have a good open dialogue with POW and the extra time afforded by this extension gives both parties an opportunity to give due consideration to the interest of all stakeholders and to reach a suitable agreement in a controlled manner.

 

"Given the external interest shown in Haneti, both Katoro and POW are willing and able to accelerate discussions should this become necessary."

 

Further background details on the Haneti Project are available in the announcement of 8 October 2019 and on the Companys website at www.katorogold.com.

 

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

 

**ENDS**

 

For further information please visit www.katorogold.com or contact:

 

Louis Coetzee

 

[email protected]

Katoro Gold plc

Executive Chairman

Bhavesh Patel

Andrew Thomson

+44 20 3440 6800

RFC Ambrian Limited

Nominated Adviser

Nick Emmerson

Sam Lomanto

 

+44 (0) 1483 413 500

 

SI Capital Ltd

 

Broker

 

Isabel de Salis

Beth Melluish

+44 (0) 20 7236 1177

St Brides Partners Ltd

Investor and Media Relations Adviser

 

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Quick facts: Katoro Gold

Price: 1.95

Market: AIM
Market Cap: £4.88 m
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