London-listed African Battery Metals (ABM) has acquired an interest in London-listed Katoro Gold and further entered into an option agreement to acquire an interest in Katoro’s Haneti nickel project, in Tanzania.
Under the terms of the agreements, ABM will be acquire up to ten-million new ordinary shares of 1p each in the capital of Katoro, together with up to ten-million warrants over ordinary shares, and an option to acquire, subject to the completion of a due diligence, up to a 35% interest in Katoro's 100%-owned Haneti project for up to £125 000.
On admission of such shares, ABM will hold 1.56% of Katoro’s enlarged issued share capital.
The Haneti project comprises tenements covering an area of around 5 000 km2 that is prospective for nickel, platinum group metals, cobalt, copper, gold and lithium.
Katoro also holds a 100% interest in the Imweru and Lubando gold projects, in Tazania, which, in total, host 754 980 oz of gold (inferred and indicated).
ABM executive director Paul Johnson commented that the agreements complemented the company’s existing interests and provided a degree of diversification, while remaining focused on Africa and battery metal projects.
“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.
“We are looking to work with Katoro on an accelerated exploration programme at Haneti to build on the knowledge that Katoro, and previous owner Kibo Mining, gathered. This includes data demonstrating 13.59% nickel in sampling of outcrops.”