African Battery Metals plc (LON:ABM) the AIM listed battery metal exploration and development company is pleased to confirm final completion of the Investment and Option Agreement (“Agreement”) with Katoro Gold plc (LON:KAT) (“Katoro”).
On 15 May 2019 ABM exercised an option to acquire shares and warrants in Katoro and a direct project holding in the Haneti Nickel Project in Tanzania. Shareholders should refer to the following ABM market announcement for further information: https://www.abmplc.com/n/n105/investment-and-joint-venture-agreement-katoro-gold-plc-haneti-nickel-project
As detailed in the Company’s RNS of 15 May 2019, full completion of this transaction was dependent on the passing of resolutions at the Katoro AGM to allow the issue of the remaining 1,400,000 new ordinary shares of 1.0 pence each in the share capital of Katoro (“Katoro Shares”) and the grant of 7,500,000 warrants to subscribe for 7,500,000 Katoro Shares at a price of 1.25 pence per share with a three-year life to expiry to ABM. This AGM was held yesterday and all resolutions were duly passed.
As a result ABM and Katoro have completed the transaction and ABM is the holder of 10,000,000 Katoro Shares and 10,000,000 warrants to subscribe for 10,000,000 Katoro Shares at a price of 1.25p per share with a three year life to expiry (2,500,000 warrants expiring on 15 March 2022 and 7,500,000 warrants expiring on 15 May 2022). ABM now holds 5.95% of Katoro Gold plc issued ordinary share capital.
In addition, ABM has acquired a 25% direct project interest in the Haneti Nickel Project (“Haneti”) in Joint Venture with Katoro (holding 75%). Furthermore, ABM has the right to acquire an additional 10% stake in Haneti, increasing its direct project interest to 35% by making a payment of £25,000 to Katoro by 15 May 2020.
Paul Johnson Executive Director of African Battery Metals plc commented: “I am delighted to announce completion of this Investment and Option Agreement with Katoro Gold through which we have not only secured a strategic holding in Katoro, but also up to 35% of the Haneti Nickel Project.
Our review of Haneti has identified significant nickel sulphide prospectivity and extremely large exploration targets fitting with ABM’s strategic drive to discover large scale mineral resource deposits.
We are working closely with Katoro Gold to accelerate the Haneti exploration programme and look forward to updating the market further in this regard.”
19 June 2019