Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, is pleased to announce an update with regard to the Company’s Blyvoor Joint Venture (the “JV”) in respect of the Blyvoor gold tailings project (the “Project”).
The recent positive announcement of the Blyvoor Scoping Study saw a significant increase in interest from possible funders, looking at potentially providing the necessary financing to support the construction and development of the Project. The Company was already engaged with a number of potential funders before announcing the Scoping Study results but received significant interest subsequently.
Given the increased interest, particularly post announcement of the Scoping Study results, Katoro Gold Plc, in conjunction with its JV Partner, believes that it is in the best interests of stakeholders to allow for sufficient time to duly entertain and properly consider the funding options/proposals from these potential funders. It is incumbent on the Company to deliver the optimum outcome for its shareholders and with the increase in interest, an additional period will ensure Katoro can ultimately secure the best possible financing option. With this in mind, the JV Partners have agreed to a further extension until 30 June 2020.
Significant progress was made over the past month in advancing the Project at all levels and most notably on the funding initiatives. The Company and its JV Partner will however continue to take a pragmatic approach in the further development of the Project, in what remains an unusual operational environment for contractual finalisation, with specific reference to financing arrangements and associated deadlines, given the COVID-19 pandemic.
Louis Coetzee, Executive Chairman of Katoro, said:
“The JV represents a unique and exciting investment opportunity for the Company with the possibility of significant near-term revenue generation within a very aggressive timeline.
“To have received 14 expressions of interest to date, despite the challenging business conditions that COVID19 has caused, is further validation that the Blyvoor Project is indeed robust and attractive to potential investors. This also demands that the Company take all steps necessary to ensure that it can adequately and responsibly assess, evaluate and consider all available options and possibilities whilst continuing to advance development at pace.
“The Company looks forward to updating shareholders on progress made on the financing deal for the JV Project and appreciate the patience and support that shareholders have shown in recent weeks.”
Further background details on the Blyvoor Scoping Study and project are available in the announcements of 30 January 2020 and 07 May 2020 on the Company’s website at www.katorogold.com
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.
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