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(Alliance News) - Katoro Gold PLC said Thursday it agreed a USD1.0 million sale of its gold projects in Tanzania to Lake Victoria Gold Ltd as part of its increasing focus on battery metals.
Katoro has agreed the term sheet for the sale of the Imweru and Lubando gold projects in northern Tanzania to Lake Victoria. The deal would see Katoro receive USD1.0 million in cash paid in stages and a 1.5% net smelter royalty.
"We remain confident in the significant potential value of Imweru and believe that LVG is well positioned to develop the project so that this potential can be fully realised," Katoro Executive Chair Louis Coetzee said.
"To this end, the optionality within the term sheet enables us to have the ability to retrieve equity in the project by retaining the option to, at our sole discretion, accept LVG shares in lieu of cash for payments subsequent to an initial USD50,000 payment as well as retaining a 1.5% NSR," Coetzee continued.
"It also releases our resources so that we can focus on our highly prospective nickel, platinum-group-elements and lithium asset, Haneti, as well as exploring other value driving opportunities," Coetzee added.
Shares in Katoro were 0.9% lower at 1.09 pence in London on Thursday.