In a cash-saving exercise, the company has agreed to issue 7.96mln shares to Mzuri Exploration Services, a subsidiary of the company’s largest shareholder, Kibo Energy, for services provided. Future fees charged by MXS up to the end of May will also be settled through the issue of shares at 1.3p a pop.
Shares in Katoro closed at 0.6p last night.
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Katoro said it has also agreed to issue 556,077 shares to Pieter Krugel, the company's financial controller, at an assumed price of 1.3p each, in lieu of overtime for his ongoing services provided to the company
Furthermore, the board has resolved to issue 14.94mln new share options to the board and management of the company.
The options constitute 10% of the company's current issued share capital and were issued at a price of 1.3 pence each, the same as the issue price of shares in the company's most recent fundraising price.
The options have a shelf life of seven years with 50% vesting on the date of issue and the remaining 50% vesting in one year.