Katoro Gold PLC (LON:KAT) has extended the timeframe around the proposed sale of its Imweru gold project in Tanzania to Lake Victoria Goldfields.
First payment is now due on 31 October 2019.
Lake Victoria has completed due diligence investigations.
In recognition of Katoro granting this extension, it is intended that Lake Victoria issue Katoro with shares with a value of up to US$50,000.
Katoro’s cash resources are sufficient to last into November. However, in the event that the first payment is not received as currently expected, Katoro will then need to seek funding without delay.
"We continue to believe that the proposed disposal provides the Company with significant upside and brings accelerated development potential to our Imweru gold project in Tanzania,” said Katoro executive chairman Louis Coetzee.
"The proposed disposal is structured to provide a number of benefits to Katoro in the form of initial cash payments to support our working capital position, deferred cash payments, which we may exchange some or all for shares in LVG, thus buying back into the equity ownership in the Imweru gold project, and a 1.5% net smelter royalty to provide ongoing exposure to Imweru.”