TIDMKAT
RNS Number : 1960I
Katoro Gold PLC
31 March 2020
Katoro Gold plc (Incorporated in England and Wales )
( Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 31 March 2020
Katoro Gold PLC ('Katoro' or the 'Company')
Financing, Business Update and TVR
Katoro Gold PLC (AIM: KAT), the gold and nickel exploration and
development company, is pleased to announce that is has raised
GBP215,000 (gross), through a placing and subscription of new
ordinary shares at 1.25p per share (the 'Fundraise').
Louis Coetzee, Executive Chairman of Katoro Gold plc commented:
"Today's financing reinforces the working capital of the Company at
a highly important time in our development.
In the context of the financing challenges faced by many
companies with the impact of COVID-19, we are pleased to be able to
demonstrate to our shareholders that the Company has bolstered its
working capital position and is able to confidently move our
business forward.
Katoro, fortuitously, is focused at present on office-based work
programmes across its projects, which are progressing well and have
only experienced a small disruption from the changes to working
practices around the world.
As a result, our business continues to develop its interests
productively and we look forward to keeping shareholders updates on
this progress."
Highlights:
-- Katoro has raised GBP215,000 (gross) through a placing and
subscription of 17,200,000 new ordinary shares of 1.00p each in the
capital of the Company ('Ordinary Shares') ('Financing Shares') at
1.25p 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 2p, with a life to
expiry of 2 years from the Financing Shares admission to trading on
AIM ('Admission'), creating 17,200,000 new warrants ('Financing
Warrants');
-- The Fundraise will provide the Company with additional
working capital and further bolster its ability to continue
uninterrupted with work on its projects during the current
uncertainty and unpredictability associated with COVID-19 and to
meet the final balance of the ZAR15 million loan due to the Blyvoor
JV;
-- In addition to the Financing Warrants the Company currently
has 15.2 million warrants outstanding, including 10 million held by
Power Metal Resources plc (LON: POW) exercisable at 1.25p and 5.2
million held by participants in the October 2019 fundraise
exercisable at 1.50p;
-- Should all 32.4 million warrants be exercised, the Company
would receive an additional GBP547,000 in cash inflow which would
provide a significant additional cash runway for the Company;
-- Work on the preliminary economic assessment / scoping study
for the Blyvoor JV gold tailings project is progressing well and
the Company will keep shareholders updated in this regard; and
-- Good progress has also been made recently on seeking to
conclude the transaction with Lake Victoria Gold for the disposal
of the Company's 100% owned subsidiary Reef Miners Limited
('Reef'), on similar commercial terms to those previously
announced.
- The transaction was originally structured to include the
disposal of both the Imweru and Lubando projects (which sit within
Reef), though will now only involve the disposal of the Imweru
project, with Lubando now being retained by the Company.
- As a result, should the transaction proceed, it will no longer
fall to be treated as a fundamental disposal requiring shareholder
approval pursuant to Rule 15 of the AIM Rules for Companies.
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 7 April 2020. Following Admission, the share capital of the
Company will comprise 228,222,129 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 228,222,129 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
Energy plc will be interested in, in aggregate, 96,138,738 Ordinary
Shares representing approximately 42.13% of the Company's then
issued share capital.
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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