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UPDATE: Katoro Gold Nets Over GBP70,000 After Warrants Exercise

Fri, 14th Feb 2020 11:31

(Alliance News) - Katoro Gold PLC said on Friday its major shareholder and other investors have exercised warrants worth GBP72,000.

Kibo Energy PLC has exercised warrants over 1.8 million shares and clients of Katoro's broker SI Capital warrants over 3.0 million shares, both at a price of 1.5 pence per share.

Katoro said the GBP72,000 will be used for general purposes. Following the exercise, there are 15.2 million warrants outstanding worth GBP203,000.

Following the conversion, Kibo now holds a 52.1% stake in Katoro, which has assets in Tanzania and a proposed tailings processing joint venture in South Africa.

Katoro shares were 3.5% lower on Friday in London at 3.33p, with Kibo down 7.7% in London at 0.60p and untraded in Johannesburg, last seen at ZAR0.12.

Earlier on Friday, Katoro reaffirmed its belief over sale of two gold projects in Tanzania.

Katoro has the Imweru and Lubando exploration sites in the north of the country. In August 2019, a term sheet was signed with Lake Victoria Goldfields Ltd which would see LVG pay up to USD1.0 million in cash and a 1.5% net smelter royalty for the projects.

Since then, LVG has received extensions to complete the deal, but in November 2019 Katoro decided not to extend the exclusivity agreement.

Katoro on Friday said "good" progress has been made with LVG, and is hopeful a deal can be reached. It did, however, stress there is no guarantee.

By George Collard; georgecollard@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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