Katoro Gold PLC Imweru Gold Project Transaction Update (8471R)
01 November 2019 - 6:00PM
UK Regulatory
TIDMKAT
RNS Number : 8471R
Katoro Gold PLC
01 November 2019
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
1 November 2019
Katoro Gold plc ('Katoro' or the 'Company')
Imweru Gold Project Transaction Update
Katoro Gold plc (AIM:KAT), the Tanzania focused exploration and
development company provides an update to its announcement of 30
September 2019, regarding the proposed acquisition of the Imweru
gold project ('Imweru' or 'the Project') by Lake Victoria Gold
Limited ('LVG').
Katoro have been working closely with the LVG team to finalise
the proposed Imweru acquisition. The proposed acquisition, on
completion, will combine two strategic gold assets in LVG,
increasing the project footprint and in-situ gold resource, which
the Board of Katoro ('Board') believes will allow a considerably
faster route to gold production.
As the deadline for completion of the proposed acquisition was
31 October 2019, LVG has requested an extension to finalise the
acquisition and for the payment of the first tranche of monies due
to Katoro under the term sheet of US$50,000 and the Board is
considering the request. Notwithstanding this request, the Board
believes that seeking to complete the disposal of Imweru to LVG is
in the Company's best interests at this time.
The Company further notes that there has recently been interest
expressed in Katoro's Lake Victoria gold interests by other third
parties. Whilst the Company's focus for now remains on working with
LVG, the Board will consider other proposals should they be
appropriate.
Further announcements will be made as appropriate.
Louis Coetzee, Executive Chairman of Katoro Gold, said: "The
operating environment for gold companies in Tanzania is
experiencing some recovery and investor sentiment toward the gold
sector in-country is improving. We note that Barrick Gold recently
announced its return to operations in Tanzania following an
amicable settlement of its dispute with the Tanzanian
Government.
This improved sentiment is evident through the level of interest
shown by other gold mining companies in Katoro's Tanzanian gold
projects. We are encouraged by the emerging optionality that the
increasing interest in our gold interests provides. So, whilst we
would like to see the LVG acquisition complete, and we expect that
to occur, there are possible alternative value generative routes
available. In addition, the current gold price has moved in the
Company's favour, at US$1,495/oz, the gold price is up 17%
year-to-date, its best performance since 2010.
I look forward to providing further updates on the LVG
acquisition at the appropriate time in due course."
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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