Katoro owns Haneti nickel and PGM deposit in Tanzania
Recently sold its two gold licences in the country in return for a royalty and US$1mln cash
Company is 54.6% owned by Kibo Energy
What it owns
Haneti comprises tenements (prospecting licences, offers and applications) that contain nickel, platinum-group-elements and gold.
It covers an area of approximately 5,000 sq. km in central Tanzania and forms a near contiguous project block.
Through exploration, Katoro (LON:KAT) is looking to confirm Haneti as a sizeable nickel sulphide project but recently identified potential for lithium and other rare earth elements.
Applications have been lodged for five additional licences at Haneti to explore the lithium potential.
Louis Coetzee, executive chairman, said: “Notwithstanding the nickel sulphide focus, work completed to date has also identified the potential for lithium and rare earth element mineralisation and we have decided to investigate this potential immediately, and in parallel to our nickel drill programme.
In August, Katoro disposed of its gold licences at Imweru and Lubando to LVG, a company that already has mining rights over a nearby block.
LVG, is paying US$1mln for Reef Miners, the owner of the Imweru and Lubando gold licences.
The consideration also includes a 1.5% Net Smelter Royalty and an alternative to take shares instead of cash.
Coetzee said he remained confident in the potential of the two licences, but the sale releases cash for Haneti.
Completion of gold licences re-positioning
Katoro sees it as a way for them to get into production more quickly
Drilling starts at Haneti
Nickel price rising strongly due to predicted need when electric vehicles and storage take off