Power Metal Resources PLC (LON:POW) has highlighted a release from Katoro Gold (LON:KAT), in which Katoro states that work in its joint venture with Blyvoor is now underway. Katoro’s plan is to recover gold and other minerals from six tailings dams controlled by Blyvoor.
Katoro’s shares jumped on the news and, after some profit-taking, settled at 2.45p, more than double the price they were trading at the beginning of last week.
Power Metal Resources holds 10mln Katoro shares, representing 5.57% of the company. In addition, Power Metal also holds 10mln warrants exercisable at 1.25p.
Power Metal also has a 25% interest in Katoro's Haneti polymetallic project in Tanzania, with a right to increase its interest to 35% by a payment to Katoro of £25,000 in cash by 15 May 2020.