Katoro Gold expands minerals portfolio, plans GBP317,500 placing

(Alliance News) - Katoro Gold PLC on Monday said it has struck a warrant-only deal to buy 31 Explore Ltd, which includes a portfolio of mining claims in Ontario, Canada, subject to the completion of conditional equity financing of GBP317,500.

The Tanzania and South Africa-focused minerals exploration and development company has entered a heads of terms agreement to buy 31 Explore in exchange for warrants over 375 million shares priced at 0.10 pence and 375 million shares priced at 0.15 pence.

The deal is subject to the completion of the GBP317,500 placing of 635 million new shares at 0.05 pence per share.

The placing price is the same as the closing mid market price on Friday and depends on approval from Katoro shareholders.

The firm said the warrant-only acquisition expands its minerals portfolio in a "top-tier mining jurisdiction".

It includes claims prospective for lithium-bearing pegmatites and rare-earth elements, the company said.

The fundraising will be used across the newly acquired claims and to speed up exploration at its existing White Pine Uranium Project in Ontario.

Katoro Gold said the appointment of Patrick Cullen as interim chief executive officer has been made permanent with immediate effect.

CEO Patrick Cullen said: "This expansion of Katoro's critical minerals exploration portfolio is a significant step forward on an exciting pathway...The acquisition in exchange solely for premium priced warrants is a very positive outcome and eliminates the immediate cash outlay or immediate share dilution typical of such transactions and enables a greater allocation of cash towards advancing the company's exploration goals.

"The board acknowledges the continued support of shareholders, we look forward to reigniting Katoro's exploration activities, delivering exploration success and shareholder value."

Katoro Gold shares were up 8.4% to 0.052 pence in London on Monday afternoon.

By Michael Hennessey, Alliance News reporter

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