Power Metal Resources plc (LON:POW) the AIM-listed African focused metals exploration and development company is pleased to draw investors’ attention to the announcement issued today by Katoro Gold plc (LON: KAT)(“Katoro Gold”)(“Katoro”).
The announcement may be viewed through the following link:
Louis Coetzee, Executive Chairman of Katoro Gold, said: “The operating environment for gold companies in Tanzania is experiencing some recovery and investor sentiment toward the gold sector in-country is improving. We note that Barrick Gold recently announced its return to operations in Tanzania following an amicable settlement of its dispute with the Tanzanian Government.
This improved sentiment is evident through the level of interest shown by other gold mining companies in Katoro’s Tanzanian gold projects. We are encouraged by the emerging optionality that the increasing interest in our gold interests provides. So, whilst we would like to see the LVG acquisition complete, and we expect that to occur, there are possible alternative value generative routes available. In addition, the current gold price has moved in the Company’s favour, at US$1,495/oz, the gold price is up 17% year-to-date, its best performance since 2010.
I look forward to providing further updates on the LVG acquisition at the appropriate time in due course.”
Power Metal Resources currently holds 10,000,000 shares which currently represents 5.57% of Katoro Gold’s issued share capital. In addition, POW also currently holds 10,000,000 warrants in Katoro Gold exercisable at 1.25p (2,500,000 warrants expiring on 15 March 2022 and 7,500,000 warrants expiring on 15 May 2022).
POW also has a 25% interest in Katoro Gold’s Haneti nickel project in Tanzania, with a right to increase its interest to 35% by a payment to Katoro Gold of £25,000 in cash by 15 May 2020.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented “We note the announcement by Katoro Gold regarding it’s Imweru gold project transaction. The transaction provides an opportunity for regional project consolidation and a considerably faster route to gold production.
However we also note with interest the improving operating environment in Tanzania, with the positive sentiment in country demonstrated by the level of interest shown by other third party gold mining companies in the Katoro gold projects.
At this stage in the junior resource cycle the return of confidence and increasing interest from third parties means the inherent value of Katoro’s gold interests may become increasingly apparent.”
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