11th Sep 2018 13:54
LONDON (Alliance News) - Katoro Gold PLC on Tuesday said loss narrowed significantly in the first half of 2018, as it prepares to buy Kibo Nickel Ltd from its majority shareholder.
The exploration company said pretax loss in the six months to the end of June was cut to GBP152,279 compared to GBP1.1 million reported for the same period a year earlier.
The company did not generate any revenue in either year as it develops the Imweru gold project in Tanzania.
During the period, Katoro said it completed all technical aspects of the pre-feasibility study and continues engagement with the Tanzanian Ministry of Minerals to determine the next steps with regards to the Imweru project development.
In June, Katoro agreed to buy Kibo Nickel, which is the sole owner of the polymetallic Haneti nickel project in Tanzania, from Katoro's majority shareholder, London-listed Kibo Energy PLC. Katoro will pay GBP200,000 in new shares and a 2% royalty on sales revenue of nickel or nickel concentrates.
Katoro said it intends to diversify its mining portfolio in order to provide shareholders with multiple value-accretive development opportunities.
"2018 has already been a highly active year for the company," said Executive Chairman Louis Coetzee.
"We now believe that we have a strong platform for growth in order to provide value to our shareholders," added Coetzee.
Shares in Katoro were trading 7.7% lower on Tuesday at 1.20 pence each. Kibo Energy shares were up 1.6% at 4.37p.
Related Shares:
Kibo EnergyKatoro Gold