Katoro Gold has announced the exercise by Power Metal Resources of its option to increase its ownership interest in the Haneti Nickel Project in Tanzania.
Previously Katoro held a 75% ownership interest in the Haneti Project with 25% held by Power Metal.
Power Metal also held an option to increase its interest to 35% by payment to Katoro of £25,000 in cash by 31 August 2020.
The company announces that yesterday it received a notice of exercise of the option by Power Metal and payment of the £25,000 option exercise fee has been received.
As a result, Power Metal now has a 35% interest in Haneti and the ownership structure of the Haneti Project is now therefore Katoro 65% and Power Metal 35%.
Katoro and Power Metal are now working together to make the necessary changes of ownership in the project holding companies and also in underlying joint venture documentation.
Both parties must meet their proportionate expenditure commitments of future costs to maintain their percentage interest or will dilute in accordance with standard industry dilution provisions.
Louis Coetzee, Chairman of Katoro Gold plc comments:
“I am pleased to see Power Metal exercising this option which further confirms their interest in the project and comes at an interesting time in the operational and corporate development of Haneti.
“We are finalising drill programme preparations and, subject to any future Covid-19 restrictions, expect to be able to commence drill operations in the near term.
“We will however continue parallel discussions with third parties expressing continued interest in Haneti. These discussions will however not slow down operational progress and we intend to push on with drilling as outlined above.”