Katoro Gold PLC Katoro Signs JV Agreement with Lake Victoria Gold (8292D)
07 März 2022 - 9:04AM
UK Regulatory
TIDMKAT
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 EUR 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 or
contact:
Louis Coetzee 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 SI Capital Ltd Broker
Sam Lomanto 500
Sewela Makgolane sewela@lifacommunications.com Lifa Communications Investor and Media
Relations Adviser
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END
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