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LONDON (Alliance News) - African Battery Metals PLC on Friday said it agreed to buy an interest in and Katoro Gold PLC together with up to 35% stake in Katoro's Haneti nickel project in Tanzania.
The AIM-listed African Battery Metals said it now has an option to acquire up to 10 million shares in Katoro, together with up to 10 million warrants. In addition, the battery metal exploration and development company intends to buy an up to 35% interest in the Haneti project for a total of GBP125,000.
African Battery Metals will acquire 2.5 million shares in Katoro at a price of 1.0 pence each, worth GBP25,000. It will then secure 2.5 million warrants, with a three year expiry term, to subscribe for another 2.5 million shares at 1.25p each.
If African Battery Metals exercises warrants, it will invest a further GBP75,000 to acquire an additional 7.5 million shares at a price of 1.0p each. Then, it will also be granted a further 7.5 million warrants, on the same terms, exercisable at 1.25p each.
Following completion of the warrants exercise, African Battery Metals will acquire a 25% interest in Katoro's wholly owned Kibo Nickel Ltd subsidiary which, through its own wholly owned subsidiary, Eagle Exploration Ltd, holds a 100% interest in Haneti. Following the option exercise, Katoro will retain a 75% interest in Kibo.
The Haneti project comprises tenements covering an area of 5,000 square kilometres and is prospective for nickel, platinum-group-elements, cobalt, copper, gold and lithium.
Following the exercise of all options, African Battery Metals will have the right to acquire a further 10% interest in Kibo for a further payment to Katoro of GBP25,000 in cash.
"The agreement announced today complements our existing interests and provides a degree of diversification whilst remaining focused on Africa and battery metal projects," said executive Director Paul Johnson.
"We are looking to work with Katoro on an accelerated exploration programme at Haneti to build on the knowledge that Katoro gathered. This includes data demonstrating 13.6% nickel in sampling of outcrops," added Johnson.
African Battery Metals shares were trading 11% lower on Friday at 0.40p each, while Katoro shares were up 47% at 0.66p each.