TIDMKAT
RNS Number : 5532O
Katoro Gold PLC
02 October 2019
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 2 October 2019
Katoro Gold PLC ('Katoro' or the 'Company')
Fundraise
Katoro Gold PLC (AIM: KAT), the Tanzanian focused exploration
and development company, is pleased to announce that is has raised
GBP100,000 (gross), through a placing and subscription of new
ordinary shares at 1.0p per share (the 'Fundraise').
Louis Coetzee, Executive Chairman of Katoro Gold plc commented:
"I am pleased to announce the Fundraise, which provides funds to
allow us to continue to advance the Company's Haneti project in
Tanzania and for general working capital requirements.
"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."
Highlights
-- Katoro has raised GBP100,000 (gross) through a placing and
subscription of 10,000,000 new ordinary shares of 1.0p each in the
capital of the Company ('Ordinary Shares') ('Financing Shares') at
1.0p per share with new and existing shareholders;
-- 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 GBP18,000 and will be issued
with 1,800,000 Financing Shares and will receive 1,800,000
Financing Warrants;
-- 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 15 May 2020 to increase its holding in Haneti to 35% by a
payment of GBP25,000 cash to Katoro;
-- 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 GBP275,000 in cash inflow which would provide a
significant cash runway for the Company.
Background to the Haneti Nickel Project
Katoro has a 75% interest in Haneti, a highly prospective,
high-grade nickel sulphide asset in Tanzania. Development of Haneti
is being advanced in tandem with its joint venture partner, POW,
which has the remaining 25% interest in Haneti and a right to
acquire a further 10% interest from Katoro to increase its interest
to 35%, through a cash payment of GBP25,000 to Katoro, until 15 May
2020.
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
US$1.5 million, has identified grades of up to 13.59% nickel with
additional gold, cobalt, platinum values and some significant
lithium anomalies. Additionally, independent work, undertaken by
Western Geophysics Pty, underlined the potential of Haneti to host
a substantial nickel sulphide deposit.
In 2012/13, the Geological Survey of Tanzania ('GST') conducted
a high resolution airborne geophysical survey covering an area of
approximately 12,000 sq. km. The GST survey outlined
mafic-ultramafic zones with strike lengths of 10-20 km (northwest
zone), 30 km (southwest zone) and 80 km (central zone), extending
the footprint of the known nickel sulphide prospective Haneti-Itiso
Ultramafic Complex ('HIUC').
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 Perth based geophysical
consultants, Spinifex Geophysics, for detailed processing and
interpretation to better understand the geology of Haneti and to
generate new target areas particularly for nickel, copper and
platinum group metals (PGM) style mineralisation.
A follow up extensive soil sampling programme was then
undertaken, the results of which were announced by Katoro on 20 May
2019. This extended the strike length of previously identified high
priority areas and the findings have been utilised to inform
planning for a proposed drill programme. Furthermore, it also
identified a new, previously unidentified exploration target.
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 Paul Dudley and Myles
Campion, consider, having consulted with the Company's nominated
adviser, Strand Hanson Limited, that the terms upon which Kibo are
participating in the Fundraise are fair and reasonable insofar as
the Company's shareholders are concerned.
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 16 October 2019. Following Admission, the share capital of
the Company will comprise 179,555,462 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 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 FCA's Disclosure Guidance and
Transparency Rules.
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.
**ENDS**
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
Nick Emmerson +44 (0) 1483 413 SI Capital Ltd Broker
Sam Lomanto 500
Isabel de Salis +44 (0) 20 7236 St Brides Partners Investor and Media
Beth Melluish 1177 Ltd Relations Adviser
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END
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