Katoro Gold Update

RNS Number : 9815R

Power Metal Resources PLC

01 November 2019

 

1 November 2019

Power Metal Resources plc ("POW" or the "Company")

Katoro Gold Update

Power Metal Resources plc (LON:POW) the AIM listed African focused metals exploration and development company is pleased to draw investors' attention to the announcement issued today by Katoro Gold plc (LON: KAT)("Katoro Gold")("Katoro").

The announcement may be viewed through the following link:

https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xq298kx

Power Metal Resources currently holds 10,000,000 shares which currently represents 5.57% of Katoro Gold's issued share capital.  In addition, POW also currently holds 10,000,000 warrants in Katoro Gold exercisable at 1.25p (2,500,000 warrants expiring on 15 March 2022 and 7,500,000 warrants expiring on 15 May 2022). 

POW also has a 25% interest in Katoro Gold's Haneti nickel project in Tanzania, with a right to increase its interest to 35% by a payment to Katoro Gold of £25,000 in cash by 15 May 2020.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented "We note the announcement by Katoro Gold regarding it's Imweru gold project transaction.  The transaction provides an opportunity for regional project consolidation and a considerably faster route to gold production.

However we also note with interest the improving operating environment in Tanzania, with the positive sentiment in country demonstrated by the level of interest shown by other third party gold mining companies in the Katoro gold projects.

At this stage in the junior resource cycle the return of confidence and increasing interest from third parties means the inherent value of Katoro's gold interests may become increasingly apparent."

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Paul Johnson (Executive Director)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat	[phone]

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                                    [phone]

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed African focused metals exploration and development company exploring for the key metals used in power generation, transmission, storage and utilisation. The Board and team of advisors, who have proven expertise in exploration, mining and project generation, have identified an opportunity to utilise the Company's position to become a leader in the London market for investors to gain exposure to the power metal commodity suite, particularly cobalt, lithium, copper and nickel. 

 

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