Katoro shares dive on potential impact of new Tanzania laws

AIM-quoted exploration company Katoro Gold has been waiting to finalise a resource update and pre-feasibility study on its Tanzanian asset, putting particular focus on the potential impact of new mining legislation that was signed into law in the African nation in July 2017.

Katoro, still focused on finalising the first phase of feasibility work at its Imweru gold project in Tanzania, undertook various studies and surveys throughout the course of 2017 as part of its expanded drilling programme.

The London-based firm also completed all technical aspects of the pre-feasibility study and had begun its assessment of the project's economic feasibility.

Louis Coetzee, Katoro's executive chairman, said, "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."

As of 0840 GMT, shares had plummeted 31.37% to 1.40p.