Katoro Gold PLC – Interim Results

Katoro Gold PLC – Interim Results

Katoro Gold PLC (‘Katoro’ or the ‘Company’) (AIM: KAT), the Tanzanian focused exploration and development company, is pleased to announce its unaudited results for the six months ended 30 June 2019. The interim results have also this morning been made available on the Company’s website: https://www.katorogold.com/

 

Delivering on strategy to expand into new commodities with an increased focus on the high potential battery metals market

 

Overview

·     Preparation work for initial drill programme at the high-grade Haneti Nickel Project (“Haneti”) in Tanzania well advanced to

Ascertain the existence of disseminated or massive sulphide mineralisation

Define a future larger scale drilling programme

·      Work to date indicates potential for nickel sulphide, lithium and rare earth element mineralisation

Historic work identified grades of up to 13.59% nickel with additional gold, cobalt, platinum credits and some significant lithium anomalies

Applications submitted for five additional exploration licences to further investigate the immediate area

·      Joint Venture with Power Metal Resources plc (‘POW’) (AIM:POW) (previously known as African Battery Metals plc) for the development of Haneti

POW has invested, in aggregate, £100,000 into Katoro to acquire 10 million new ordinary shares in the Company (‘Ordinary Shares’), representing 5.90% of the Company’s current issued share capital, 10 million warrants over Ordinary Shares and a 25% interest in Haneti

£100,000 received by Katoro restricted to investment in Haneti’s work programme; £80,000 of which has been spent to date

·    Term sheet agreed with Lake Victoria Gold Limited (‘LVG’) for the proposed sale of the Company’s wholly owned subsidiary, Reef Miners Limited (‘Reef Miners’), for a staged cash consideration of up to US$1.0 million and a 1.5% Net Smelter Royalty

Reef Miners owns both the Imweru Gold Project (‘Imweru’) and Lubando Gold Project (‘Lubando’)

Deal structure allows Katoro to maintain exposure to Imweru (and Lubando) through an ability, subject to the Company’s sole discretion, to indirectly buy back into Imweru through electing to receive shares in LVG for up to US$850,000 of the US$1.0 million stipulated cash consideration

Disposal of Reef Miners subject to completion of due diligence by LVG, agreement on the terms of a binding sale and purchase agreement and receipt of any governmental, regulatory and/or shareholder approvals

§   Extension agreed between Katoro and LVG for the payment of the first tranche of monies due to Katoro (US$50,000) to 27 September 2019

 

Louis Coetzee, Executive Chairman of Katoro, said, “In Haneti we hold an asset, highly prospective for a high-grade nickel sulphide deposit, which when considering the current strong market fundamentals for nickel when paired with the rapidly growing electric vehicle market, is an extremely exciting opportunity for Katoro.  I am very encouraged by the recent developments at Haneti, which signify that we are now in a position to further investigate both the identified lithium and rare earth element mineralisations in parallel with our planned drill programme. 

 

“As we have highlighted in various announcements throughout the period, Katoro’s evolved strategy is to develop a portfolio of assets focused primarily on the battery metals arena.  With this in mind, the agreement with LVG regarding the proposed sale of Reef Miners is an important step for the Company in our advancement of this strategy.  We remain confident in the potential of Imweru and feel that LVG has the ability to fully realise this potential.  The proposed disposal will allow us, at our sole election, to maintain equity exposure and royalty income to the potential short time to revenue of Imweru, whilst also freeing up our resources to focus on the development of Haneti.

 

“We believe that Haneti is a strong platform from which we can grow our battery metals portfolio.  We anticipate further developments in the coming year and I look forward to updating shareholders on developments in this arena in due course.”

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