Aim-listed Katoro Gold has entered into an investment and option agreement with fellow Aim-listed African Battery Minerals (ABM) that will result in ABM acquiring up to 35% of Katoro's Haneti nickel project, in Tanzania, for £125 000.
Under the terms of the agreement, ABM will acquire, in tranches, up to ten-million Katoro shares, as well as up to ten-million warrants over ordinary shares in Katoro.
The agreement is subject to due diligence by ABM.
"We are very pleased with the interest ABM has acquired in Katoro and the agreement holds the promise of establishing a strategic partnership with ABM, with whom we can explore and, ultimately, hopefully, develop the full potential of Haneti. The investment by ABM fits perfectly with Katoro's development strategy for Haneti and will enable the company to execute its exploration programme for Haneti quicker and with significantly more effectiveness and efficiency.
"We are looking forward to working with ABM on an accelerated exploration programme at Haneti that builds on the extensive existing knowledge that Katoro, and Kibo Energy, its prior owner and majority shareholder of Katoro, have gathered. This includes data demonstrating 13.59% nickel in sampling of outcrops," Katoro chairperson Louis Coetzee said on Wednesday.
ABM executive director Paul Johnson added that the acquisition of an interest in Haneti provided ABM a degree of diversification.
"Alongside our existing copper and cobalt interests, the addition of nickel into our portfolio exposes our shareholders to another strategically significant metal where we believe the forward supply/demand dynamics are looking highly attractive," he stated.