Katoro Signs JV Agreement with Lake Victoria Gold
07/03/2022 08:04
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RNS Number : 8292D Katoro Gold PLC 07 March 2022
Katoro Gold plc (Incorporated in England and Wales)
(Registration Number: 9306219)
Share code on AIM: KAT
ISIN: GB00BSNBL022
("Katoro" or "the Company")
Dated: 07 March 2022
Katoro Gold PLC ('Katoro' or the 'Company')
Update on Imweru Gold Project
Katoro Signs Joint Venture Agreement with Lake Victoria Gold
Katoro Gold PLC (AIM: KAT), the gold and nickel exploration and development
company, announces that it has entered into a Joint Venture Agreement
('Agreement') with Lake Victoria Gold ('LVG') for the development of the
Company's Imweru Gold Project ('Project'). Under the Agreement, LVG will earn
up to 80% in the Project, with the balance of 20% being held by Katoro as a
carried interest.
The Company previously announced to the market that the Project was disposed
of by virtue of a sale transaction (see RNS of 12 June 2020). The
administrative process to finalise registration of the sale transaction, and
therefore trigger ongoing milestone payments due to Katoro, was subsequently
indefinitely delayed due to unforeseen statutory barriers related to the
transfer of ownership at project level. This created a situation where no
definitive schedule date could be established for transfer of ownership and
issue of the relevant milestone convertible loan notes. In light of this
unsustainable situation the Company and LVG agreed to cancel the sale
transaction and to enter into a Joint Venture instead ("the JV").
Agreement Highlights
· JV Funding:
§ LVG will earn a JV-interest of up to 80% in the JV and will be responsible
for 100% of the JV funding requirements.
§ All debt funding required by the JV will be procured or provided by LVG.
§ The JV will reimburse Katoro for previous expenditures in the amount of €
792,000 on or before 31 December 2023
· Management: The JV shall appoint a Project Manager to manage the
Project.
· Cancellation Agreement: The original Agreement to dispose of the
Project will be cancelled by mutual consent of the parties.
· Appointment of Directors: Three directors, two nominated by LVG and
one by Katoro will form the Board of the JV.
Katoro CEO, Louis Coetzee, commented: "The decision to cancel the sale of the
Project and to enter into a Joint Venture instead was a strategic decision by
the Katoro Board to address challenges that made it impossible to complete the
sale agreement within an acceptable time frame. We are looking forward to
growing this JV-partnership with LVG, who is currently developing the Imwelo
Gold Project. With Imwelo being located adjacent to Imweru and in advanced
stage of development towards first production, we believe that the combination
of the two projects will create a larger and significantly more economic
project that will be able to attract suitable funding to accelerate the
further development and exploitation of the combined gold mining project."
Further information on the Agreement
· LVG is an unlisted public company, incorporated in Australia,
operating multiple exploration licences including its key project, the Imwelo
Gold Project in Tanzania ('Imwelo'), located adjacent to Imweru and also
holds the relevant environmental approvals and mining licence for Imwelo.
· The current, JORC code compliant, mineral resource for Imweru and
Imwelo consists of 11.6 Mt at a grade of 1.38 g/t for 515,110 oz Au and 4.7 Mt
at 1.92 g/t for 291,600 oz Au respectively and probable reserve for Imwelo
consists of 1.4 Mt at 2.2 g/t for 97,394 oz Au.
This announcement contains inside information as stipulated under the Market
Abuse Regulations (EU) no. 596/2014.
**ENDS**
For further information please visit www.katorogold.com
(http://www.katorogold.com) or contact:
Louis Coetzee louisc@katorogold.com (mailto:louisc@katorogold.com) Katoro Gold plc Executive Chairman
Bhavesh Patel +44 20 3440 6800 RFC Ambrian Limited Nominated Adviser
Andrew Thomson
Nick Emmerson +44 (0) 1483 413 500 SI Capital Ltd Broker
Sam Lomanto
Sewela Makgolane sewela@lifacommunications.com (mailto:sewela@lifacommunications.com) Lifa Communications Investor and Media Relations Adviser
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