Katoro Gold Plc: General Update

RNS Number : 7727H

Katoro Gold PLC

06 August 2021

 

Katoro Gold plc (Incorporated in England and Wales)

( Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

 

06 Aug 2021

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

Katoro Gold Plc: General Update

Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to update the market regarding its two projects, The Blyvoor Joint Venture project ("BV") and The Haneti Nickel PGM project ("Haneti").  

The following RNS' must be read in conjunction with this General Update; 4 March, 7 April, 4 May 2021.

THE BLYVOOR JOINT VENTURE PROJECT ("BV")

After completion of the main technical workstream and the subsequent publication of a comprehensive Competent Person's Report ("CPR") as reported in RNS dated 4 May 2021, the funding workstream, which was at an advanced stage already, could progress further, specifically focused on a short-listed group of potential investors and lenders in conjunction with our team of financial advisors. The main objective of the funding workstream is to structure and secure comprehensive funding, comprising both debt and equity, to fund the complete development, construction and commissioning of the Blyvoor Gold Tailings Project.

Progress To Date

-  Investor and lender negotiations advanced at pace following the announcement of 04 May 2021, with several parties submitting initial funding offers / proposals that were within the broad funding requirements and expectations of the Company.

-  Following the recent unrest in the Kwazulu-Natal and Gauteng provinces of South Africa, the funding process came to an abrupt standstill with a significant number of the parties on the preferred funder list requesting time to re-assess whether the country risk for their potential investment into the BV has been adversely impacted in any material way.

-  Some of the potential funders have subsequently indicated that they are satisfied that the latest events in South Africa did not have any adverse impact on their existing risk rating, and negotiations / discussions with these potential funders have since resumed, while the Company awaits the final decision from those preferred funding parties who have not yet completed their country risk re-assessment.

Next steps for the Company on BV include:

-  Investor and lender agreement negotiations to be completed and to conclude final funding arrangement for BV during the latter part of 2021.

-  Conclusion of future EPC, mining contractor and operator appointment, subject to successful funding referred to above.

THE HANETI NICKEL PGM PROJECT

Further to our announcement of 7 April 2021 in which a planned d iamond drilling project was announced with the objective to intersect the TDEM and magnetic geophysics anomalies, i.e. the primary sulphide mineralisation and fresh unaltered rock samples for mineralogical analysis, the Company can now confirm that planning for the campaign has been completed. The planning process involved amongst others the careful consideration of exploration results to date to ensure accurate hole positioning and required extensive technical consultation.

The drill programme and associated budget for Haneti will now be submitted for approval and subsequent implementation.

Louis Coetzee, Executive Chairman of Katoro, said:   "We are satisfied and encouraged with the continued progress on the BV funding process despite recent delays on account of the political unrest in South Africa.  The interest and confidence in the merit of the BV as a robust project remains very strong with potential funders. The general view in this regard is in fact that the BV is strong and robust enough to mitigate a substantial part of the perceived country risk in its own right.

We are similarly excited to commence with the next phase of drilling on the Haneti project after the confirmatory results of the 2020 RAB drilling programme that strongly confirmed the exploration potential of the Haneti project and the merit of continuing with advanced exploration activities .

The Company has also been able to manage its cash reserves very astutely since the last placement in December 2020 which leaves the Company in a position to confidently continue with the various workstreams discussed above."

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	NOMAD on AIM
Nick Emmerson Sam Lomanto	[phone]	SI Capital Ltd	Broker
Isabel de Salis	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

 

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