Financing, Business Update and TVR

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 £215,000 (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 £215,000 (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 £547,000 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	[e-mail]	Katoro Gold plc	Executive Chairman
Richard Tulloch Ritchie Balmer Georgia Langoulant	[phone]	Strand Hanson 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

 

 

UPDEAPDFDLSEEEA