Update re African Battery Metals Agreement

Katoro Gold PLC (Incorporated in England and Wales)

(Registration Number: 9306219) 

Share code on AIM: KAT

ISIN: GB00BSNBL022

("Katoro" or "the Company") 

Dated: 19 June 2019

Katoro Gold PLC ("Katoro" or the "Company")

Investment and Joint Venture Agreement - African Battery Metals plc

Katoro Gold PLC (AIM: KAT), the Tanzanian focused exploration and development company, is pleased to confirm that further to the announcement of 15 May 2019, the Investment and Option Agreement ("Agreement") with African Battery Metals plc ("ABM") (LON:ABM) have now been completed.

On 15 May 2019, Katoro announced that ABM had exercised its option to invest a further £75,000 to acquire shares and warrants in Katoro and a 25% direct project holding in the Haneti Nickel Project ("Haneti") in Tanzania.

Full completion of this transaction was dependent on the passing of certain share capital resolutions at the Katoro AGM.  This AGM was held yesterday and all resolutions were duly passed.

As a result, and as detailed in the 15 May announcement, the 1,400,000 new ordinary shares of 1.0 pence each in the capital of the Company ("Ordinary Shares") (the "Second Instalment Shares") and warrants will now be issued to ABM.

On admission of the Second Instalment Shares, ABM will be interested in 10,000,000 Ordinary Shares, representing approximately 5.95% of Katoro's then enlarged shares capital, and 10,000,000 warrants to subscribe for 10,000,000 new Ordinary Shares at a price of 1.25 pence per share with a three-year life (the "Warrants").

ABM has also acquired a 25% direct project interest in Haneti, with Katoro retaining a 75% interest.  Furthermore, ABM has the right to acquire an additional 10% interest in Haneti, increasing its direct project interest to 35%, by making a further payment of £25,000 in cash to Katoro by 15 May 2020.

All monies received from ABM under the Agreement, other than in respect of monies received on the exercise of the Warrants, are to be allocated to the maintenance, exploration and development of Haneti.  ABM will also now be required to fund its 25% share of Haneti's costs, or its interest will be diluted in accordance with standard industry fund or dilute provisions;

Louis Coetzee, Executive Chairman of Katoro Gold PLC commented: "We are very pleased that the ABM Agreement has now been completed and we are looking forward to implement an accelerated exploration programme at Haneti, that builds on the extensive existing knowledge basis for Haneti which includes data demonstrating 13.59% nickel in sampling of outcrops."

Admission to Trading and Total Voting Rights

Application will be made for the admission to trading on AIM of the Second Instalment Shares ("Admission"), with such Admission expected to become effective on or around 25 June 2019.  Following Admission, the share capital of the Company will comprise 167,962,477 Ordinary Shares.

Each Ordinary Share has one voting right.  No Ordinary Shares are held in treasury.  Accordingly, the total number of voting rights will be 167,962,477 and this figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, Katoro under the FCA's Disclosure Guidance and Transparency Rules.

Following the Admission of the Second Instalment Shares, Kibo Energy PLC will be interested, in aggregate, in 90,945,754 Ordinary Shares representing approximately 54.15% of the Company's then issued share capital.

**ENDS**

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

For further information please visit www.katorogold.com or contact: