Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update in respect of the Haneti Project ("Haneti").
Previously Power Metal held a 25% ownership interest in Haneti with 75% held by Katoro Gold plc (LON:KAT)("Katoro"). As announced on 15 March 2019, the Company 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 EXECUTED
The Company announces that today it has exercised that option, paid £25,000 to Katoro, and now has a 35% interest in Haneti. Therefore the ownership structure of Haneti is now 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.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
"Haneti is a considerable opportunity in terms of size and geological potential. The focus to date has been largely the nickel sulphide potential, which is understandable given the drill ready targets at Mihanza Hill and Mwaka Hill.
"However, alongside the drill ready targets, the full impact of the 80km potential strike length and the polymetallic opportunities across a 5,000 sq km strategic project footprint, mean that Haneti is a project capable of delivering discoveries in nickel sulphide (and laterite), copper, platinum group metals, gold, lithium and rare earths.
"As Katoro has highlighted, there is significant interest in Haneti from larger companies, and with good reason, given the size and diversity of opportunity.
"Taking all factors into account we felt it was important to exercise the option to increase our interest with immediate effect to 35% and so we have done so."
20 August 2020