Katoro Gold PLC - Completion of Disposal - Imweru Gold Project
(Registration Number: 9306219)
Share code on AIM: KAT
("Katoro" or "the Company")
Completion of Disposal -
· Further to the Company's announcement of
· The Transaction has been approved by the
· Final Condition Precedent now met and the Transaction between LVG and Katoro has been completed
"The disposal also adds to the Company's working capital, including up to
"I wish the team at LVG well as it develops the business and executes a smooth and accelerated pathway into gold production."
Further Transaction Information
Katoro has finalised the Transaction with LVG regarding its Imweru gold project held by its 100% Tanzanian registered subsidiary,
LVG is an unlisted public company, incorporated in
The Transaction will see two strategic gold assets combined, which increases the project footprint and in-situ gold resource, and will, the
Imweru is located in the Lake Victoria Goldfields region of northern
The current, JORC-compliant, mineral resource at Imweru consists of 11.6 Mt at a grade of 1.38 g/t for 515,110 oz Au. Exploration work to date has only covered 50% of the project area.
Under the terms of the Transaction, Katoro will receive
The Convertible Loan Notes issued and constituted by the Convertible Loan Note Instrument shall be repaid in cash or converted at the sole discretion of Katoro within 30 days of the dates set out in the Transaction agreement.
If Katoro elects to convert any of the Convertible Loan Notes, the price at which the conversion takes place and the Ordinary Shares are issued shall be
The Transaction agreement provides anti-dilution provisions enabling Katoro to at least maintain its proportionate holding in LVG, created by any conversion of the Convertible Loan Notes.
In addition to the Convertible Loan Notes, LVG shall pay to Katoro a net smelter royalty of 1.5% on all gold produced from the Mineral Rights calculated in accordance with the terms the Transaction.
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 20 3440 6800
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+44 (0) 1483 413 500
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+44 (0) 20 7236 1177
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