RNS25 Jun 2020 13:17
25 June 2020
Power Metal Resources plc ("POW" or the "Company")
Katoro Gold Update
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to draw investors' attention to the announcement issued today by Katoro Gold plc (LON: KAT)("Katoro Gold" or "Katoro").
The announcement may be viewed through the following link:
https://polaris.brighterir.com/public/katoro_gold/news/rns/story/xznznlx
POW HOLDING IN KATORO GOLD
Power Metal Resources holds 10,000,000 Katoro shares which currently represents 3.99% of Katoro Gold's issued share capital. In addition, POW also holds 10,000,000 warrants in Katoro Gold exercisable at 1.25p (2,500,000 warrants expiring on 15 March 2022 and 7,500,000 warrants expiring on 15 May 2022).
POW also has a 25% interest in Katoro's Haneti polymetallic project in Tanzania, with a right to increase its interest to 35% by a payment to Katoro of £25,000 in cash by 31 August 2020.
EXTRACT FROM KATORO GOLD ANNOUNCEMENT
"The Haneti Polymetallic Project :
In recent months, Katoro has received mid and tier 1 approaches with a view to earn-in, joint venture or similar, in respect of the Haneti Project, with a primary focus on the nickel sulphide potential.
Whilst these discussions are ongoing, the Company will continue to enhance the intrinsic value of the project through further exploration work. In this regard the Company intends to finalize and execute an exploration drill program over the existing drill ready targets at Haneti. (For further information on Haneti please see RNS dated 26 June 2019)"
Paul Johnson Chief Executive Officer of POW commented:
"We note the oversubscribed placing undertaken by Katoro as announced today. It is positive to see Katoro progressing discussions following approaches from mid and tier 1 companies with regard to the Haneti project and also the finalisation and execution of an exploration drill programme.
The Haneti project is one of two POW project interests that are gearing up to undertake a drill programme, the other being the Molopo Farms Complex project in Botswana. Both projects are targeting potentially high-impact nickel sulphide discoveries.
I look forward to reporting further developments."
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