Katoro Gold said it had agreed a term sheet with Lake Victoria Gold to sell its subsidiary, Reef Miners, which owned the Imweru gold project and the Lubando gold project in northern Tanzania, for a total staged cash consideration of up to US$1.0m and a 1.5% net smelter royalty.
The sale was in line with Katoro's strategy to develop a portfolio of assets focused on the battery metals sector, the company said.
'We remain confident in the significant potential value of Imweru and believe that LVG is well positioned to develop the Project so that this potential can be fully realised,' said Louis Coetzee, Executive Chairman of Katoro Gold.
'To this end, the optionality within the Term Sheet enables us to have the ability to retrieve equity in the Project by retaining the option to, at our sole discretion, accept LVG shares in lieu of cash for payments subsequent to an initial US$50K payment as well as retaining a 1.5% NSR.'
At 9:27am: (LON:KAT) Katoro Gold Mining Plc share price was 0p at 1.1p