Power Metal Increases Haneti Project Interest

RNS Number : 7137W

Katoro Gold PLC

20 August 2020

 

Katoro Gold plc (Incorporated in England and Wales)

( Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company")

 

20 August 2020

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

POWER METAL INCREASES HANETI PROJECT INTEREST

Katoro Gold plc (AIM:       KAT), the AIM listed   gold and nickel exploration and development company, is pleased to announce the exercise by Power Metal Resources plc (LON:POW)("Power Metal") of its option to increase its ownership interest in   the Haneti Nickel Project in Tanzania ( "Haneti" or the "Project").

BACKGROUND

Previously Katoro held a 75% ownership interest in the Haneti Project with 25% held by Power Metal.

Power Metal also held an option to increase its interest to 35% by payment to Katoro of £25,000 in cash by 31 August 2020.

INCREASE IN PROJECT INTEREST BY POWER METAL

The Company announces that yesterday it received a notice of exercise of the option by Power Metal and payment of the £25,000 option exercise fee has been received.

As a result, Power Metal now has a 35% interest in Haneti and the ownership structure of the Haneti Project is now therefore Katoro 65% and Power Metal 35%.

Katoro and Power Metal are now working together to make the necessary changes of ownership in the project holding companies and also in underlying joint venture documentation.

Both parties must meet their proportionate expenditure commitments of future costs to maintain their percentage interest or will dilute in accordance with standard industry dilution provisions.

Louis Coetzee, Chairman of Katoro Gold plc commented: "I am pleased to see Power Metal exercising this option which further confirms their interest in the project and comes at an interesting time in the operational and corporate development of Haneti.

"We are finalising drill programme preparations and, subject to any future Covid-19 restrictions, expect to be able to commence drill operations in the near term. 

"We will however continue parallel discussions with third parties expressing continued interest in Haneti. These discussions will however not slow down operational progress and we intend to push on with drilling as outlined 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	Nominated Advisor
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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