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Katoro Signs JV Agreement with Lake Victoria Gold
Katoro Signs JV Agreement with Lake Victoria Gold.
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[{"type":"text","content":"\n \n \n \n RNS Number : 8292D\n Katoro Gold PLC\n 07 March 2022\n \n \n \n \n Katoro Gold plc (Incorporated in England and Wales)\n \n \n (\n Registration Number: 9306219)\n \n \n Share code on AIM: KAT\n \n \n ISIN: GB00BSNBL022\n \n \n (\"Katoro\" or \"the Company\")\n \n \n \n \n \n Dated: 07 March 2022\n \n \n \n \n \n Katoro Gold PLC ('Katoro' or the 'Company')\n \n \n \n \n \n Update on Imweru Gold Project\n \n \n Katoro Signs Joint Venture Agreement with Lake Victoria Gold\n \n \n \n \n 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.\n \n 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\").\n \n Agreement Highlights\n \n · \n JV Funding:\n \n \n § LVG will earn a JV-interest of up to 80% in the JV and will be responsible for 100% of the JV funding requirements. \n \n § \n All debt funding required by the JV will be procured or provided by LVG.\n \n \n § \n The JV will reimburse Katoro for previous expenditures in the amount of € 792,000 on or before 31 December 2023 \n \n \n · \n Management: \n The JV shall appoint a Project Manager to manage the Project.\n \n \n · \n Cancellation Agreement:\n \n \n \n The original Agreement to dispose of the Project will be cancelled by mutual consent of the parties.\n \n \n · \n Appointment of Directors:\n ...