TIDMKAT
RNS Number : 9800C
Katoro Gold PLC
14 February 2020
Katoro Gold plc (Incorporated in England and Wales )
( Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
14 February 2020
Katoro Gold plc ('Katoro' or the 'Company')
UPDATE ON TANZANIAN ASSETS
Katoro Gold plc (AIM: KAT), the gold and nickel exploration and
development focused company , has recently provided updates in
respect of its Blyvoor gold production joint venture ('the Blyvoor
JV') where good progress has been made to date and where multiple
work streams are underway at present. Further updates in respect of
the Blyvoor JV will be provided as material developments occur.
We would like to take this opportunity to update shareholders,
with regard to the Company's primary Tanzanian assets, being its
interests in the Imweru Gold Project and Haneti Polymetalic
Project.
IMWERU GOLD PROJECT
-- On 22 August 2019, the Company announced that it had agreed a
term sheet for the potential disposal of the Company's 100% owned
subsidiary Reef Miners Limited, which holds 100% of the Imweru and
Lubando gold projects in northern Tanzania in a transaction with
Lake Victoria Goldfields Limited ('LVG') for a total staged cash
consideration of up to US$1.0 million and a 1.5% n et s melter r
oyalty (the 'Transaction') ;
-- As previously announced, the Company granted various
extensions to LVG to complete the Transaction, with Katoro
receiving 700,000 LVG shares with a value of AUS$70,000
(approximately US$47,230) in recognition of the extensions;
-- On 1 November 2019, the Company announced that LVG had not
yet completed on the Transaction and that the Company had decided
to not grant a formal extension to the exclusivity period, though
it agreed to continue working with LVG whilst also considering
potential interest from other third parties;
-- The Company is pleased to confirm that good progress has been
made with LVG and that, whilst there is no guarantee, the board of
Katoro ('Board') hopes to be able to conclude the Transaction;
and
-- The Company confirms that if the Transaction does proceed, it
will be subject to Katoro shareholder approval pursuant to Rule 15
of the AIM Rules for Companies.
HANETI PROJECT
-- On 8 October 2019, Katoro provided an update to shareholders
in respect of the Haneti Polymetalic Project in central
Tanzania;
-- Haneti is a polymetallic system with identified potential for
nickel (sulphide and laterite), Platinum Group Metals ('PGMs'),
copper, gold, lithium and rare earth elements ('REEs');
-- Within the approximately 5,000 sq. km project area, the
principle target zone is an 80 km long ultramafic belt with grades
from surface sampling of up to 13.6% nickel and 2.33 g/t combined
platinum and palladium ;
-- Within the 80 km ultramafic belt is the principle target,
Mihanza Hill, where 2015 geophysical work identified significant
extensions to nickel sulphide prospective target rock formations
and geochemical interpretation has identified prospectivity for
chonolith type nickel-copper-PGM mineralisation;
-- Mihanza Hill is believed by the Company, based on desktop
work undertaken, to have the potential to host a similar style of
mineralisation to the Sipa Resources Limited (ASX:SRI) Akelikongo
nickel project in Uganda;
-- Katoro has been developing, subject to funding, plans to
implement a drill programme at Haneti, focused on nickel sulphide
and PGM targets at Mihanza Hill and Mwaka Hill, the two priority
targets;
-- The Company continues to explore all funding options for the
advancement of Haneti, which may include further join ventures or
farm-ins; and
-- The recent feedback received at the Mining Indaba conference
in Cape Town, South Africa in early February 2020, included
considerable interest in large scale nickel exploration projects,
from mid-tier and Tier 1 mining companies, and demonstrated to the
Board the strategic value of Haneti.
Current Haneti Project Ownership Structure
Katoro has a 75% interest in Haneti. Development of Haneti is
being advanced in tandem with its joint venture partner, Power
Metal Resources plc (LON:POW) ('Power Metal'), 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 looks forward to keeping shareholders updated on
progress across its Tanzanian assets and will make further
announcements as appropriate.
Louis Coetzee, Executive Chairman of Katoro, said: " I am
immensely proud of the work undertaken by the Katoro team in what
we all believe is an exciting and potentially transformational
phase for the Company.
"As we sit today, we have, subject to funding being secured, the
Blyvoor JV offering the prospect of significant revenues from
future gold production, the potential to monetise our interests in
our Lake Victoria gold interests and upside from future exploration
in respect of our Haneti Polymetallic deposit.
"These opportunities have been created and advanced during
incredibly difficult market conditions and the Board believes the
Company is well positioned for a recovering sector environment with
business interests of substantial value and potential for
shareholders. "
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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