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”).
Power Metal Resources holds 10,000,000 shares representing 5.90% of Katoro Gold’s issued share capital. In addition, POW also 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.
Katoro has today announced that it has agreed a term sheet for the proposed disposal of 100% of Katoro’s wholly owned subsidiary, Reef Miners Limited, which owns the Imweru gold project and the Lubando gold project in northern Tanzania to Lake Victoria Gold Limited.
Katoro will receive total staged cash consideration of up to US$1.0 million and a 1.5% Net Smelter Royalty (“NSR”).
The proposed disposal allows for development of the projects utilising external resources, with Katoro retaining project exposure through the option to exchange cash consideration for shares in Lake Victoria Gold Limited, and from the 1.5% NSR.
Katoro is to focus its resources on the development of a portfolio of assets focused on the battery metals sector including the Haneti nickel project which has attracted significant interest from investors.
Investors wishing to view the Katoro Gold announcement may do so through the following link:
22 August 2019