REG - Katoro Gold PLC - Business Update

Katoro GoldAnnouncement

19/03/2024 07:00

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RNS Number : 3197H  Katoro Gold PLC  19 March 2024

 Katoro Gold plc (Incorporated in England and Wales)

(Registration Number: 9306219)

Share code on AIM: KAT

ISIN: GB00BSNBL022

('Katoro' or 'the Company')

 

 

Dated: 19 March 2024

 

 

 

Katoro Gold PLC ('Katoro' or the 'Company')

 

Business Update

 

Katoro Gold PLC (AIM:KAT), the strategic and precious minerals exploration
and development company, announces a business update for shareholders
following the Financing, Business Development and Director Changes
announcement of 12 February 2024, which may be viewed in the link below:

https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xljg7pr
(https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xljg7pr)

 

BOARD AND MANAGEMENT

Since 12 February 2024, the Company has appointed Sean Wade as Non-executive
Chairman, and Louis Coetzee has moved from the role of Executive Chairman into
the role of Executive Director to continue the management of business
operations.

The appointment of a new Chief Executive Officer is expected in the near term
and, as notified, on their appointment Mr Coetzee will step down from the
Board of the Company into the role of business consultant until 31 July 2024
to again assist with transitional business operations.

 

TECHNICAL MANAGEMENT AND OPERATIONS

All key team members have been retained and provide a solid technical and
administrative support group for the Company.

Within the existing team, and complemented by new management, Katoro has
access to key technical personnel, including licensing specialists and
geologists, with extensive experience in Africa and notably, Tanzania,
Botswana and Namibia.

For North America and Australia, a similar situation persists with the Company
now able to call upon technical advisory support in Australia and North
America.

 

REVIEW OF EXISTING INTERESTS

The Company is in the process of reviewing all existing interests.

The emphasis is on pursuing only those interests where the further investment
of managerial and technical time, and financial resources, yields a reasonable
prospect of a strong commercial outcome.

Any investment in existing interests must be weighed against the value
available from potential new opportunities (further outlined below).  As a
result, and in order to avoid the depletion of working capital on sub-optimal
activities, a number of definitive steps have now been taken.

The latest position on each area of the existing business is as follows:

 

 

Haneti Project - Tanzania

The Haneti Project ("Haneti") is targeting a large-scale nickel sulphide
discovery in Tanzania, on which historical exploration to date has included
rotary air blast and diamond drilling. See announcement of 31 May 2022 for
results of diamond drilling programme.

Katoro holds a 65% interest in Haneti with joint venture partner Power Metal
Resources plc holding 35%.

A Haneti technical committee ("HTC") has been established to undertake a
detailed review of the entirety of the historical project exploration data,
project geology and to formulate a concise and cost-effective exploration plan
to move the project forward.

The HTC includes team members from Katoro and Power Metal, and external
specialists with requisite project knowledge.

Further updates are anticipated in respect of Haneti including detailed
project exploration plans.

Blyvoor Project - South Africa

Following review of the Blyvoor Project, and given the new direction of Katoro
and the need to focus on a clear pathway to high value business activities,
the Company has decided to cease any further investment in this project with
immediate effect.

There are two principal reasons for this: the difficulty navigating a complex
commercial ownership situation with the original project vendors and notable
local disturbances in the area of the project which would make pursuance of
the project extremely challenging, even if the Company were able to resolve
the commercial challenges to secure a project interest.

The Company reserves its rights to pursue recovery of any amounts invested to
date from third parties where it is appropriate to do so.

Lake Victoria Gold - Imweru Project

Under contract, the Company is due €792,000 from Australian private company
Lake Victoria Gold ("LVG") following the transaction involving a joint venture
agreement covering the Company's Lake Victoria gold interests to LVG in March
2022.  This liability was due to be settled by 31 December 2023 and is
disputed by LVG and accordingly the Company is now taking legal advice in
respect of this outstanding amount with a view to taking appropriate recovery
action for the amount considered due.

Namibian Iron Ore

In September 2022 the Company announced it had entered into a binding
conditional agreement to form a 50/50 unincorporated joint venture ('JV') with
Trans Namibian Mining and Minerals (Pty) Ltd  ("TNMM").  The joint venture
sought to continue the development of TNMM's iron ore project and the original
announcement may be viewed through the link below:

https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xegeynw
(https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xegeynw)

As part of the conditionality attaching to the transaction, the Company sought
evidence of ownership title in respect of the project and this evidence has
not been forthcoming to the level needed by the Company.  Given the new
direction of Katoro, the Company has decided to cease any further investment
in this project with immediate effect.

The Company reserves its rights to pursue recovery of any amounts invested to
date from third parties where it is appropriate to do so, albeit the amounts
invested to date are very modest given the limited progress achieved.

 

All projects above are currently carried at £nil in the Company's last
published Balance Sheet.

 

NEW OPPORTUNITIES

Whilst the Company remains highly engaged with regard to the Haneti Project,
as outlined above, the identification of additional, potentially high-value
project opportunities is a clear route to further grow the interests of the
Company and generate value for shareholders.

The strong African and global technical capabilities accessible by the Company
are opening up a wide range of possibilities, to develop existing interests
and in the potential acquisition of new opportunities.  This includes an
ability to stake new ground in strategic locations and, if relevant to
consider acquisitions or earn-ins on existing project interests.

The aim of Katoro now is to focus on a limited number of high impact
exploration and development projects, rather than a diverse wide-ranging
portfolio, enabling the allocation of working capital into a set of focused
business interests.

In all cases due regard is given to the managerial and financial resources of
the Company to ensure transactions, if and when undertaken, are manageable by
the Company.

 

MARKETING AND COMMUNICATIONS

The Company is currently migrating its information database and communications
including email and website out of the Kibo Energy plc group, into an
independent server and management arrangement.  This process is expected to
conclude shortly.

In parallel, the Company is undertaking a full revision of the Company's
website and investor marketing materials and further updates will be provided
when this has been completed.

 

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    Info@katorogold.com (mailto:Info@katorogold.com)  Katoro Gold PLC           Executive Director
 James Biddle     +44 207 628 3396                                  Beaumont Cornish Limited  Nominated Adviser

 Roland Cornish
 Nick Emmerson    +44 148 341 3500                                  SI Capital Ltd            Broker

 Sam Lomanto

 

Beaumont Cornish Limited ('Beaumont Cornish') is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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