there you go25 Feb 2020 07:31
UPDATE RE BLYVOOR JV AND DRAW DOWN OF THE SANDERSON FACILITY
Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company , is pleased to provide a progress and financing update in respect of the Company's Blyvoor JV (the 'JV'), a near term gold production opportunity announced on 30 January 2020 ('the Announcement').
Further details on the Agreement, the JV , the Tailings and the funding are set out in the Announcement, which can be viewed at the following link:
https://polaris.brighterir.com/public/katoro_gold/news/rns/story/x43nzkw
Highlights:
-- Commercial and technical development of the Blyvoor Project progressing well, with work done to date achieving successful outcomes and validating the JV business plan
- good progress has been made in respect of the feasibility work, definitive plant design and related test work to update and optimise historical work
-- JV management committee and newly appointed JV Manager, Graham Briggs, are fully operational and overseeing progress
-- Pursuant to the Agreement, Katoro to provide a ZAR15.0 million (approximately GBP790,000) loan to the JV to fund ongoing development work ('the Loan Facility')
- ZAR5.0 million (approximately GBP263,000) has already been advanced
- to fund accelerated Project development activities, Katoro expects to advance the remaining ZAR10.0 million (approximately GBP527,000) in the near term
-- To fund the Loan Facility, and as previously announced, Katoro issued a convertible loan note to SI Capital clients for GBP397,000 and secured the right to an additional GBP400,000 through Sanderson Capital Partners Ltd ('Sanderson')
-- Katoro has now issued notice to Sanderson to draw down the additional GBP400,000 in full, from which Katoro will provide further funding to the JV (through the Loan Facility)
Louis Coetzee, Executive Chairman of Katoro commented: "The Katoro team have been very pleased with the progress being made at the Project, co-ordinated by the JV management committee and led by the recently appointed JV Manager, Graham Briggs.
Pleasingly, the Project is proceeding more rapidly than anticipated and the drawn down of the Sanderson CLN will enable us to fund the ongoing work programme.
The Board of Katoro notes the strengthening gold price which further bolsters, what we consider to be very robust project economics, as previously announced."
Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meaning as those used in the Announcement of 30 January 2020.
FURTHER INFORMATION
Katoro confirms that in addition to the GBP397,000 convertible loan note (the 'CLN') secured from clients of SI Capital, the Company's broker, it has now completed the second tranche of convertible loan note funding from Sanderson, initial details of which were announced on 30 January 2020.
Sanderson is to subscribe for GBP400,000 in the form of a convertible loan no
Sign In
Follow the stocks
