Katoro Gold PLC Haneti Polymetallic Project - Commercial Update (1352O)
28 May 2020 - 4:00PM
UK Regulatory
TIDMKAT
RNS Number : 1352O
Katoro Gold PLC
28 May 2020
Katoro Gold plc (Incorporated in England and Wales )
( Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
28 May 2020
Katoro Gold plc ('Katoro' or the 'Company')
HANETI POLYMETALLIC PROJECT - COMMERCIAL UPDATE
Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel
exploration and development company, is pleased to provide an
update in respect of commercial discussions relating to the Haneti
polymetallic project (the 'Project').
BACKGROUND:
On 15 March 2019 Katoro announced an Investment and Option
Agreement whereby Power Metal Resources plc (AIM:POW) (formerly
African Battery Metals plc) could acquire up to a 35% interest in
the Project. This announcement may be viewed through the following
link:
https://polaris.brighterir.com/public/katoro_gold/news/rns/story/rdp9o9r
After due diligence POW duly acquired a 25% interest in the
Project on 15 May 2019 and held an option to acquire a further 10%
through a payment to Katoro of GBP25,000 by 15 May 2020, with the
option period subsequently extended to 31 May 2020 as announced on
15 May 2020.
In recent months Katoro has received approaches with a view to
earn-in, joint venture or other similar structures in respect of
the Project, with a primary focus on the nickel sulphide
potential.
It is apparent that to crystallise the interest shown into a
potential commercial transaction, it is preferable, and possibly a
requirement, for Katoro and POW to restructure ownership of the
Project.
Katoro and POW have therefore agreed to continue to monitor the
development of any potential commercial transaction(s), before any
final agreement is agreed upon and to in lieu of this, extend POW's
option to increase its holding in the Project to 31 August 2020.
This will allow both parties the benefit of further discussions and
to carefully consider all available options based on additional
information.
Louis Coetzee, Executive Chairman of Katoro, said:
"Katoro is in a very busy and positive period at present,
particularly in respect of our work on the Blyvoor gold tailings
project. We have a good open dialogue with POW and the extra time
afforded by this extension gives both parties an opportunity to
give due consideration to the interest of all stakeholders and to
reach a suitable agreement in a controlled manner.
"Given the external interest shown in Haneti, both Katoro and
POW are willing and able to accelerate discussions should this
become necessary."
Further background details on the Haneti Project are available
in the announcement of 8 October 2019 and on the Companys website
at www.katorogold.com.
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
Bhavesh Patel +44 20 3440 6800 RFC Ambrian Limited Nominated Adviser
Andrew Thomson
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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