JOHANNESBURG (miningweekly.com) – Aim-listed Katoro Gold remains firmly on track to develop a portfolio of assets focused primarily on battery metals.
As part of the company’s battery metals strategy, it undertook preparation for an initial drill programme at the high-grade Haneti nickel project, in Tanzania, while finalising a joint venture with Power Metal Resources (PMR) and progressing the sale of its subsidiary Reef Miners during the six months ended June 30.
The preparation work for the drill programme had, so far, confirmed the existence of disseminated or massive sulphide mineralisation, which would set the course for a future large-scale drilling programme, the company said on Friday.
The work on the project to date suggests potential for nickel sulphide, lithium and rare earths mineralisation.
Historical work on Haneti identified grades of up to 13.59% nickel, with additional gold, cobalt, platinum credits and some significant lithium anomalies.
Katoro has submitted five applications for additional exploration licences to further investigate the immediate area around Haneti.
During the six months to June 30, Aim-listed PMR invested £100 000 in Katoro to acquire ten-million new ordinary shares, representing 5.90% of Katoro’s issued share capital, ten-million warrants over ordinary shares and a 25% interest in Haneti.
Katoro has spent £80 000 of the PMR investment on the project so far.
Meanwhile, Katoro in the reporting period also signed a term sheet agreement with Lake Victoria Gold (LVG) for the proposed sale of Reef Miners for up to $1-million and a 1.5% net smelter royalty.
Reef Miners owns the Imweru and Lubando gold projects, in Tanzania.
Katoro CEO Louis Coetzee said in a statement on Friday that the deal structure allows the company to maintain exposure to the project through an ability to indirectly buy back into Imweru through electing to receive shares in LVG for up to $850 000 of the $1-million stipulated cash consideration.
The disposal remains subject to completion of due diligence by LVG and the payment of the first $50 000 tranche of funds due to Katoro by September 27.
“In Haneti we hold an asset that is highly prospective for a high-grade nickel sulphide deposit, which, when considering the current strong market fundamentals for nickel, coupled with the rapidly growing electric vehicle market, is an extremely exciting opportunity for Katoro.
“I am encouraged by the recent developments at Haneti, which signify that we are now in a position to further investigate both the identified lithium and rare earth element mineralisations in parallel with our planned drill programme,” Coetzee commented.
He added that, with the company’s battery metals-focused strategy in mind, the agreement with LVG was an important step towards advancing the strategy.
“The proposed disposal will allow us, at out sole election, to maintain equity exposure and royalty income to the potential short time to revenue of Imweru, while freeing up our resources to focus on the development of Haneti.”