Katoro Gold PLC Update re African Battery Metals Agreement (7734C)
June 19 2019 - 8:00AM
UK Regulatory
TIDMKAT TIDMABM
RNS Number : 7734C
Katoro Gold PLC
19 June 2019
Katoro Gold PLC (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 19 June 2019
Katoro Gold PLC ("Katoro" or the "Company")
Investment and Joint Venture Agreement - African Battery Metals
plc
Katoro Gold PLC (AIM: KAT), the Tanzanian focused exploration
and development company, is pleased to confirm that further to the
announcement of 15 May 2019, the Investment and Option Agreement
("Agreement") with African Battery Metals plc ("ABM") (LON:ABM)
have now been completed.
On 15 May 2019, Katoro announced that ABM had exercised its
option to invest a further GBP75,000 to acquire shares and warrants
in Katoro and a 25% direct project holding in the Haneti Nickel
Project ("Haneti") in Tanzania.
Full completion of this transaction was dependent on the passing
of certain share capital resolutions at the Katoro AGM. This AGM
was held yesterday and all resolutions were duly passed.
As a result, and as detailed in the 15 May announcement, the
1,400,000 new ordinary shares of 1.0 pence each in the capital of
the Company ("Ordinary Shares") (the "Second Instalment Shares")
and warrants will now be issued to ABM.
On admission of the Second Instalment Shares, ABM will be
interested in 10,000,000 Ordinary Shares, representing
approximately 5.95% of Katoro's then enlarged shares capital, and
10,000,000 warrants to subscribe for 10,000,000 new Ordinary Shares
at a price of 1.25 pence per share with a three-year life (the
"Warrants").
ABM has also acquired a 25% direct project interest in Haneti,
with Katoro retaining a 75% interest. Furthermore, ABM has the
right to acquire an additional 10% interest in Haneti, increasing
its direct project interest to 35%, by making a further payment of
GBP25,000 in cash to Katoro by 15 May 2020.
All monies received from ABM under the Agreement, other than in
respect of monies received on the exercise of the Warrants, are to
be allocated to the maintenance, exploration and development of
Haneti. ABM will also now be required to fund its 25% share of
Haneti's costs, or its interest will be diluted in accordance with
standard industry fund or dilute provisions;
Louis Coetzee, Executive Chairman of Katoro Gold PLC commented:
"We are very pleased that the ABM Agreement has now been completed
and we are looking forward to implement an accelerated exploration
programme at Haneti, that builds on the extensive existing
knowledge basis for Haneti which includes data demonstrating 13.59%
nickel in sampling of outcrops."
Admission to Trading and Total Voting Rights
Application will be made for the admission to trading on AIM of
the Second Instalment Shares ("Admission"), with such Admission
expected to become effective on or around 25 June 2019. Following
Admission, the share capital of the Company will comprise
167,962,477 Ordinary Shares.
Each Ordinary Share has one voting right. No Ordinary Shares are
held in treasury. Accordingly, the total number of voting rights
will be 167,962,477 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 FCA's Disclosure Guidance and
Transparency Rules.
Following the Admission of the Second Instalment Shares, Kibo
Energy PLC will be interested, in aggregate, in 90,945,754 Ordinary
Shares representing approximately 54.15% of the Company's then
issued share capital.
**ENDS**
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:
Louis Coetzee louisc@katorogold.com Katoro Gold plc Executive Chairman
Richard Tulloch +44 (0) 20 7409 Strand Hanson Limited Nominated Adviser
Ritchie Balmer 3494
Georgia Langoulant
Ben Tadd +44 (0) 20 3700 SVS Securities Broker
Tom Curran 0093
Isabel de Salis +44 (0) 20 7236 St Brides Partners Investor and Media
1177 Ltd Relations Adviser
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END
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