Business
Acquisition of Nickel Project & Placing
Acquisition of Nickel Project & Placing.
About this update from Focus Xplore Plc
[{"type":"text","content":"\n \nRNS Number : 2169S Katoro Gold PLC 22 June 2018 \n\n \nKatoro Gold plc (Incorporated in England and Wales)\n(Registration Number: 9306219) \nShare code on AIM: KAT\nISIN: GB00BSNBL022\n(\"Katoro\" or \"the Company\") \n \nDated: 22 June 2018\n \nKatoro Gold PLC ('Katoro' or the 'Company')\nConditional Acquisition of High Grade Nickel Sulphide Project & Placing\n \nKatoro Gold PLC (AIM: KAT), the Tanzanian focused exploration and development company is pleased to announce that it has entered into a conditional agreement to acquire Kibo Nickel Limited and its wholly owned subsidiary, Eagle Exploration Limited (the 'Kibo Nickel Group'), from the Company's majority shareholder, Kibo Mining plc ('Kibo') (the 'Acquisition'), which is the 100% owner of the polymetallic Haneti Nickel Project ('Haneti' or the 'Project') in Tanzania. \n \nAdditionally, the Company announces that it has raised £325,000 via a placing ('the Placing') of 25,000,000 new ordinary shares of £0.01 each in the Company ('Ordinary Shares') (the 'Placing Shares') at a price of 1.30 pence (the 'Placing Price').\n \nOverview\n· Conditional acquisition of 100% interest in the Kibo Nickel Group from Kibo Mining (Cyprus) Limited (the 'Seller'), a wholly owned subsidiary of Kibo, for £200,000, payable through the issue of 15,384,615 new Ordinary Shares to Kibo at the Placing Price, together with a 2% royalty payable on any sales revenue (less transportation and refining costs) in respect to nickel or nickel concentrates\n· Completed a placing to raise £325,000 (before expenses) from new and existing shareholders to further develop the Company's existing gold projects in Tanzania, develop Haneti and for general working capital purposes\n─ Kibo, the Company's majority shareholder, to invest £75,000 in the Placing\n─ Following receipt of the net proceeds of the Placing, Katoro will have cash resources of approximately £705,000\n· The Acquisition is part of Katoro's commodity diversification strategy \n· The Kibo Nickel Group controls 100% of Haneti, which covers an area of approximately 5,000 sq. km and forms a near contiguous project block, with appr...