Katoro Gold PLC (LON:KAT) has agreed to sell its Lake Victoria projects in Tanzania to focus on the nickel potential at Haneti.
A private Australian group, LVG, is paying US$1mln for Reef Miners, the owner of the Imweru and Lubando gold licences.
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The consideration also includes a 1.5% Net Smelter Royalty and an alternative to take shares instead of cash.
Louis Coetzee, Katoro’s executive chairman, said it remained confident in the potential of the two licences, but the sale releases can for the nickel, platinum-group-elements and lithium asset at Haneti.
Katoro is a subsidiary of Kibo Enrgy PLC (LON:KIBO), which has a 54.6% stake.
Power Metal Resources PLC (LON:POW) owns a 5.9% stake in Katoro Gold and has a 25% stake in Haneti with a right to raise its interest in the project to 35% for £25,000 in cash by 15 May 2020.