1st Nov 2019 14:02
(Alliance News) - Exploration firm Katoro Gold PLC on Friday said it is considering handing Lake Victoria Gold Ltd an extension to finalise the purchase of the Imweru gold project.
Katoro, which is looking to dispose of the Tanzania project, said Lake Victoria requested an extension to finale the purchase and pay the first payment tranche of USD50,000.
Katoro said: "The board is considering the request. Notwithstanding this request, the board believes that seeking to complete the disposal of Imweru to LVG is in the company's best interests at this time."
The company added that other parties have expressed an interest, and while Katoro is aiming to complete the deal with Lake Victoria, it fired a warning hot at the Australian gold miner. Katoro said it will "consider other proposals should they be appropriate".
Katoro first announced the deal to sell both Imweru and the Lubando gold project, also in Tanzania. The firm said the deal would see Katoro receive USD1.0 million in cash paid in stages and a 1.5% net smelter royalty.
Executive Chairman Louis Coetzee said: "The operating environment for gold companies in Tanzania is experiencing some recovery and investor sentiment toward the gold sector in-country is improving. We note that Barrick Gold Corp recently announced its return to operations in Tanzania following an amicable settlement of its dispute with the Tanzanian Government."
Katoro shares were untraded at 1.10 pence each in London on Friday afternoon.
By Eric Cunha; [email protected]
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