Aim-listed Katoro Gold notes that the recent positive announcement by the Blyvoor joint venture (JV) project’s gold tailing scoping study has resulted in a significant increase in interest from potential funders who may provide the necessary financing to support the construction and development of the project.
The company was already engaged with a number of potential funders before announcing the scoping study results but has received significant interest subsequently.
Given the increased interest, Katoro Gold, in conjunction with its JV partners, believes that it is in the best interests of stakeholders to allow for sufficient time to duly entertain and properly consider the funding options and proposals from these potential funders.
It is incumbent on the company to deliver the optimum outcome for its shareholders and with the increase in interest, an additional period will ensure Katoro can ultimately secure the best possible financing option, the company states.
With this in mind, the JV partners have agreed to a further extension until June 30.
Significant progress has been made over the past month in advancing the project at all levels, most notably on the funding initiatives.
“The company and its JV partner will however continue to take a pragmatic approach in the further development of the project, in what remains an unusual operational environment for contractual finalisation, with specific reference to financing arrangements and associated deadlines, given the Covid-19 pandemic,” Katoro notes.
"The JV represents a unique and exciting investment opportunity for the company with the possibility of significant near-term revenue generation within a very aggressive timeline.
"To have received 14 expressions of interest to date, despite the challenging business conditions that Covid-19 has caused, is further validation that the Blyvoor project is indeed robust and attractive to potential investors.
"This also demands that the company take all steps necessary to ensure that it can adequately and responsibly assess, evaluate and consider all available options and possibilities whilst continuing to advance development at pace,” comments Katoro executive chairperson Louis Coetzee.