Power Metal Resources plc (LON:POW) the AIM listed African focused metal exploration and development company is pleased to announce an update in respect of the Haneti Project in Tanzania (“Haneti” or the “Project”).
POW has established a joint venture ("JV") with Katoro Gold Plc (“Katoro” LON:KAT) in respect of Haneti, (the "Haneti JV"). POW has a 25% interest in the Haneti JV with a right to increase to a 35% interest through a cash payment of £25,000 to Katoro, until 15 May 2020. Katoro has a 75% interest in the Haneti JV. POW will contribute 25% to the cost of Haneti Project maintenance and exploration or will dilute in accordance with standard industry provisions.
POW also holds 10,000,000 shares in Katoro representing 5.95% of Katoro's issued share capital.
Paul Johnson, Executive Director of Power Metal Resources plc commented: “Our original interest in Haneti was principally with regard to the large scale nickel sulphide targets and the upcoming drill programme that will be undertaken to test those targets.
Having lithium, and potentially rare earth element, prospectivity at Haneti is also very interesting and adds to the excitement and potential of the Haneti Project for the project partners; and shareholders of both POW and Katoro alike.
I look forward to reporting further in respect of these additional exploration activities being undertaken at Haneti.”
9 July 2019