9th Mar 2018 09:42
LONDON (Alliance News) - Shares in Katoro Gold PLC fell sharply on Friday as it said changes in Tanzanian mining legislation have led it to conduct further assessments on the economic viability of the Imweru gold project.
Shares in the gold-focused miner dropped 39% at 1.24 pence on Friday.
After undertaking an expanded drilling programme and various studies in 2017, Katoro will look to finalise a resource update and pre-feasibility study at Imweru. All the technical aspects of the study have been completed and the economic feasibility is now being assessed, with specific attention to the new regulations passed in July.
A new Finance Act has been approved by the country's parliament, which imposes a 1% clearing fee on the value of all minerals exported from Tanzania from July 1.
"Changes in the Tanzania mining legislation and associated mining regulations, recently released, has compelled the company to conduct further assessments to determine the extent to which the new legislation and regulations may impact the viability of the Imweru gold project. Work in this regard is nearing completion and a further update will follow shortly," said Executive Chairman Louis Coetzee.
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Katoro Gold
