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’).
Following a significant increase in interest from possible funders and an extensive site visit by the JV-management and technical team, the Company is pleased to announce that the JV partners have agreed a strategy and associated deadlines for securing Project financing. Katoro will look to complete the Project Financing on or before 30 September 2020, which will be sufficient to fund the construction and commissioning of a Beneficiation Plant and auxiliary operations.
With this revised timeframe the JV Partners believe there is sufficient time to duly entertain and properly consider preferred funding options/proposals from the potential funders they have received interest from and are in dialogue with, so as to secure the best possible financing option. The impact of COVID-19 however remains a harsh reality and it will continue to influence the pace and manner in which we can meet agreed deadlines.
Louis Coetzee, Executive Chairman of Katoro, said:
“The strong levels of interest we have received from no less than 14 parties keen to provide project-level financing to support the construction and development of the Blyvoor Project is a clear indication of its value potential.
“Whilst we have always been comfortable alongside our JV partners with regard to our ongoing partnership, we recognized that many investors wanted some clarity as to Katoro’s exclusivity position after the expiry of the June 2020 project level funding deadline caused principally by Covid-19 disruption and the extensive interest from third parties. In response we have agreed a formal extension to 30 September 2020 which we trust will address concerns investors may have with the security of our position in the Blyvoor JV.
“Our primary responsibility remains to ensure we identify the best possible partner(s) and funding option(s) that will best support and realize our JV goal of delivering significant near-term revenue generation within a very aggressive timeline.”
Further background details on the Blyvoor Scoping Study and project are available in the announcements of 30 January 2020, 07 May 2020, 29 May 2020 and 1 July 2020 on the Company’s website at www.katorogold.com