Katoro Gold PLC Acquisition of High-Grade Nickel Sulphide Project (5216I)
November 26 2018 - 9:35AM
UK Regulatory
TIDMKAT
RNS Number : 5216I
Katoro Gold PLC
26 November 2018
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 26 November 2018
Katoro Gold PLC ('Katoro' or the 'Company')
Completed Acquisition of High-Grade Nickel Sulphide Project
Katoro Gold PLC (AIM: KAT), the Tanzanian focused exploration
and development company, is pleased to announce that further to its
announcement of 22 June 2018, it has completed the all-share
acquisition of Kibo Nickel Limited and its wholly owned subsidiary,
Eagle Exploration Limited (the 'Kibo Nickel Group'), from the
Company's majority shareholder, Kibo Energy plc ('Kibo') (the
'Acquisition'), which is the 100% owner of the polymetallic Haneti
Nickel Project ('Haneti' or the 'Project') in Tanzania. The
Acquisition in line with the Company's strategy to diversify its
commodity portfolio.
Louis Coetzee, Katoro's Executive Chairman said, "Given the
strong nickel market fundamentals driven primarily by demand from
the electric vehicle and energy storage sectors, Haneti represents
an exciting opportunity for Katoro. Covering approximately 5,000
sq. km, to date exploration work totalling approximately US$1.5
million has been undertaken at the Project demonstrating its
potential: Previous sample results have included values of 13.59%
nickel, 0.25% cobalt, 78 ppb (parts per billion) gold, 413 ppb
platinum, 1930 ppb palladium and 927 ppm (parts per million)
copper, as well as interesting lithium anomalies. Our focus is now
on utilising our decades of experience developing projects in
Tanzania to advance a work programme at Haneti in tandem with
developing our Imweru gold project located in northern
Tanzania."
The Acquisition
Under the terms of Acquisition, Katoro is satisfying the
consideration payable to Kibo of GBP200,000 by way of an issue to
Kibo of 15,384,615 new ordinary shares of GBP0.01 each in the
Company ('Ordinary Shares') ('Consideration Shares') at 1.30 pence,
being equal to the placing price of the placing undertaken by the
Company in June 2018. The Consideration Shares will rank pari passu
with the existing Ordinary Shares. Furthermore, Katoro will pay
Kibo a 2% royalty on any sales revenue (less transportation and
refining costs) in respect to nickel or nickel concentrates.
The 5,000 sq. km polymetallic Haneti Nickel Project in Tanzania
is a highly prospective, high-grade nickel sulphide asset. Previous
work totalling approximately US$1.5 million has identified stellar
grades of up to 13.59% nickel with additional gold, cobalt,
platinum credits and some significant lithium anomalies.
Additionally, independent work, undertaken by Western Geophysics
Pty, underlines the potential of the Project for substantial nickel
sulphide deposit. The Company now intends to implement its own work
programme to further confirm Haneti's prospectivity.
Total Voting Rights
Application will be made for the Consideration Shares to be
admitted to trading on AIM. Trading in the Consideration Shares is
expected to commence on AIM on or around 03 December 2018
('Admission'). Following Admission, the Company shall have
149,447,825 Ordinary Shares in issue and this figure may be used by
shareholders as the denominator for the calculations to determine
if they are required to notify their interest in, or a change to
their interest in, the Company under the FCA's Disclosure Guidance
and Transparency Rules.
On Admission, Kibo will hold 82,987,179 Ordinary Shares in the
Company, representing 55.53% of the enlarged share capital of the
Company.
**ENDS**
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014.
For further information please visit www.katorogold.com or
contact:
Louis Coetzee louisc@katorogold.com Katoro Gold plc Executive Chairman
Richard Tulloch +44 (0) 20 7409 Strand Hanson Nominated Adviser
Ritchie Balmer 3494 Limited
Frederick Twist
Ben Tadd +44 (0) 203 7000 SVS Securities Broker
Tom Curran 093
Isabel de Salis +44 (0) 207 236 St Brides Partners Investor and Media
Gaby Jenner 1177 Ltd Relations Adviser
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END
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