Aim-listed African Battery Metals (ABM) has confirmed the completion of its investment and option agreement with fellow Aim-listed Katoro Gold.
ABM in May exercised an option to acquire shares and warrants in Katoro and a direct project holding in the Haneti nickel project in Tanzania.
Completion of the transaction had been dependent on the passing of resolutions at Katoro’s annual general meeting (AGM) to allow the issue to ABM of the remaining 1.4-million new ordinary shares of 1p each in the share capital of Katoro and the grant of 7.5-million warrants to subscribe for 7.5-million Katoro shares at a price of 1.25p a share with a three-year life to expiry.
Katoro’s AGM was held earlier this week and all resolutions were duly passed.
As a result, ABM is now the holder of ten-million Katoro shares and ten-million warrants to subscribe for a further ten-million Katoro shares at a price of 1.25p a share with a three-year life to expiry.
ABM now holds 5.95% of Katoro Gold’s issued ordinary share capital.
In addition, ABM has acquired a 25% direct project interest in the Haneti nickel project in a joint venture with Katoro, which holds 75%.
Further, ABM has the right to acquire an additional 10% stake in Haneti, increasing its direct project interest to 35% by making a payment of £25 000 to Katoro by May 15, 2020.
ABM executive director Paul Johnson says the company’s review of Haneti has identified significant nickel sulphide prospectivity and large exploration targets fitting with ABM's strategic drive to discover large-scale mineral resource deposits.
“We are working closely with Katoro to accelerate the Haneti exploration programme and look forward to updating the market further in this regard."