Business
Potential Disposal of Imweru Gold Project
Potential Disposal of Imweru Gold Project.
About this update from Focus Xplore Plc
[{"type":"text","content":"\n \nRNS Number : 8377J Katoro Gold PLC 22 August 2019 \n\n \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 \n \n \n22 August 2019\nKatoro Gold plc ('Katoro' or the 'Company')\nTerm Sheet regarding potential US$1.0 million Disposal of Imweru Gold Project\n \nKatoro Gold plc (AIM:KAT), the Tanzanian focussed gold and nickel exploration and development company, is pleased to announce that it has agreed a term sheet ('the Term Sheet') with Lake Victoria Gold Limited ('LVG' or the 'Purchaser') covering the disposal of 100% of the Company's wholly owned subsidiary, Reef Miners Limited, which owns the Imweru gold project ('Imweru' or the 'Project') and the Lubando gold project in northern Tanzania to LVG for a total staged cash consideration of up to US$1.0 million and a 1.5% Net Smelter Royalty ('NSR') ('the Proposed Disposal').\n \nThe Proposed Disposal is reflective of Katoro's evolved strategy to develop a portfolio of assets focused on the battery metals sector. The recent acquisition of the Haneti Nickel Project has attracted significant interest from investors and the Company has been involved in the evaluation of further opportunities as it looks to capitalise on the battery metal demand fundamentals and deliver value for its shareholders.\n \nLouis Coetzee, Executive Chairman of Katoro Gold, said, \"We remain confident in the significant potential value of Imweru and believe that LVG is well positioned to develop the Project so that this potential can be fully realised. To this end, the optionality within the Term Sheet enables us to have the ability to retrieve equity in the Project by retaining the option to, at our sole discretion, accept LVG shares in lieu of cash for payments subsequent to an initial US$50K payment as well as retaining a 1.5% NSR. It also releases our resources so that we can focus on our highly prospective nickel, platinum-group-elements and lithium asset, Haneti, as well as exploring other value driving opportunities.\" \n \nFurther Details on the Term Sheet and Proposed Disposal\n \nImweru is in the Lake Victoria Goldfields region of northern Tanzania and forms part of the Imweru Lice...