Great to have Louis Coetzee back in the studio, since his last podcast update, it’s been a busy time for the company since we last spoke.
It has been a strong beginning to 2020 so far for Katoro Gold, I’ll start with what seems to have kicked it all off, the Gold Tailing Project & JV at Blyvoor in South Africa, this appears to have a realistic chance of what seems to be an almost (in mining terms) instant revenue-producing potential, can you give us a brief overview of the deal?
Here are some of the questions we asked Louis;
- You mentioned a JV manager, can you tell us a little about Graham Briggs?
- With the strength in the Gold Price and sound fundamentals, what is left to do before you can commence production?
- Katoro’s Haneti project, can you walk me through the latest developments with the project including positive discussions at Indaba including interest from Mid & Tier 1 companies?
Update re Joint Venture with Blyvoor
Further details on the Agreement, the JV, the Tailings and the funding are set out in the Announcement, which can be viewed at the following link:
· Commercial and technical development of the Blyvoor Project progressing well, with work done to date achieving successful outcomes and validating the JV business plan
– good progress has been made in respect of the feasibility work, definitive plant design and related test work to update and optimise historical work
· JV management committee and newly appointed JV Manager, Graham Briggs, are fully operational and overseeing progress
· Pursuant to the Agreement, Katoro to provide a ZAR15.0 million (approximately £790,000) loan to the JV to fund ongoing development work (‘the Loan Facility’)
– ZAR5.0 million (approximately £263,000) has already been advanced
– to fund accelerated Project development activities, Katoro expects to advance the remaining ZAR10.0 million (approximately £527,000) in the near term
· To fund the Loan Facility, and as previously announced, Katoro issued a convertible loan note to SI Capital clients for £397,000 and secured the right to an additional £400,000 through Sanderson Capital Partners Ltd (‘Sanderson’)
· Katoro has now issued notice to Sanderson to draw down the additional £400,000 in full, from which Katoro will provide further funding to the JV (through the Loan Facility)
Louis Coetzee, Executive Chairman of Katoro commented: “The Katoro team have been very pleased with the progress being made at the Project, co-ordinated by the JV management committee and led by the recently appointed JV Manager, Graham Briggs.
Pleasingly, the Project is proceeding more rapidly than anticipated and the drawn down of the Sanderson CLN will enable us to fund the ongoing work programme.
The Board of Katoro notes the strengthening gold price which further bolsters, what we consider to be very robust project economics, as previously announced.”
Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meaning as those used in the Announcement of 30 January 2020.
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