15th May 2019 17:42
LONDON (Alliance News) - African Battery Metals PLC has exercised its option to acquire an additional interest in Katoro Gold PLC and thereby obtained a 25% interest in the Haneti Nickel Project in Tanzania.
African Battery said Wednesday it has exercised the option to invest a further GBP75,000 to acquire an additional 7.5 million new ordinary shares at 1.0 pence each. The investment will be satisfied from African Battery's existing cash resources.
The exploration company will also be granted warrants to subscribe for additional 7.5 million Katoro shares at 1.25p per share with a three-year life to expiry from today's date.
As a result of the option exercise, the company will also acquire a 25% interest in Kibo Nickel Ltd, which owns the Haneti Nickel Project in Tanzania. African Battery will be required to fund its 25% share of the project's costs, or its interest will be diluted in accordance with standard industry fund or dilute provisions.
The exploration company also retains the right to acquire a further 10% interest in Kibo Nickel for a further payment to Katoro of GBP25,000 in cash.
African Battery has already acquired 2.5 million ordinary shares in Katoro for GBP25,000 in March. With the additional GBP75,000 investment, the company will own 6.0% stake in Katoro.
Shares in African Battery closed at 0.45p each. Katoro Gold shares closed 15% higher at 0.80p.