Blyvoor Gold Tailings Project Funding Update

RNS Number : 5909A

Katoro Gold PLC

30 September 2020

 

Katoro Gold plc (Incorporated in England and Wales)

( Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

 

30 September 2020

Katoro Gold plc ('Katoro' or the 'Company')

BLYVOOR GOLD TAILINGS PROJECT: PROJECT FUNDING UPDATE

Katoro Gold plc (AIM: KAT), the AIM listed   gold and nickel exploration and development company, is pleased to announce an update with regard to the Company's Blyvoor Joint Venture (the 'JV') in respect of the Blyvoor gold tailings project (the 'Project').

On 21 July 2020 the Company announced that it has agreed a strategy and associated deadlines for securing Project financing for the Blyvoor gold tailings project with its JV Partner, and that in terms of this agreement Katoro will look to complete the Project Financing for the Project on or before 30 September 2020. During August and September, the Company made significant progress towards securing the necessary funding, sufficient to fund the construction and commissioning of a Beneficiation Plant and auxiliary operations. Working with the significant number of parties that showed interest in providing funding for the Project, the Company has developed a preferred funding strategy for the Project that involves the utilisation of different funding instruments. This strategy allowed the Company to identify and engage with a select number of preferred funding providers with whom it is currently developing a final funding arrangement for the Project. All these parties have provided formal / firm expressions of interest, with certain milestones having now been agreed to guide a predetermined due diligence process towards a final funding agreement for the Project.

The first milestone to be completed is the Resource update and upgrade currently underway (See RNS of 03 September 2020). The Resource update and upgrade will deliver an updated Resource and Reserve statement, as well as a SAMVAL valuation report for the Project, expected by the end of October. (NOTE: The Reserve statement will only apply to TSF 6 and 7's contribution to the total Project Resource statement, which constitutes more than 60% of the existing total Project Resource statement of c. 1.3-million-ounces).

Following an initial due diligence investigation, potential funders have now commenced with an in-depth due diligence investigation on the Project, which can only be completed upon completion of the work referred to above.  

During a Blyvoor Joint Venture meeting on 29 September 2020, the current funding status of the Project was discussed and the JV Partners expressed their satisfaction with the funding strategy and the progress made towards securing the required project funding. Considering the significant overall progress made to date in the development of the Project, the JV Partners decided to set 30 November 2020 as the next target date for the completion of Project Financing.

The impact of COVID-19 however remains a harsh reality and it will continue to influence the pace and manner in which agreed deadlines can be met. Over the past months COVID-19 has contributed to significant delays in various aspects of our ongoing work on the Project, which the Company and its JV Partners have been able to contain and mitigate very effectively to date, as a result of thorough and diligent contingency planning.

Louis Coetzee, Executive Chairman of Katoro, said:

"The Company continues to make good progress on the Blyvoor Project. We are very pleased with the overall progress during the past two months and specifically on the funding side of matters. Completion of the resource work referred to in the text above is now the next critical milestone.  

"Our primary responsibility remains to ensure that we develop and agree the best possible funding arrangement for the Project in co-operation with our prospective funding partner(s) that will best support and realise our JV goal of delivering significant near-term revenue generation within a very aggressive timeline, which we still believe is achievable."

Further background details on the Blyvoor Scoping Study and project are available in the announcements of 30 January 2020, 07 May 2020, 29 May 2020 and 1 July 2020 on the Company's 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	[e-mail]	Katoro Gold plc	Executive Chairman
Bhavesh Patel Andrew Thomson	[phone]	RFC Ambrian Limited	Nominated Adviser
Nick Emmerson Sam Lomanto	[phone]	SI Capital Ltd	Broker
Isabel de Salis Beth Melluish	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

 

END

 

 

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