In the update, Katoro, in which Power Metal holds a 5.57% stake, said “good progress” had been made with Lake Victoria Goldfields Ltd regarding the potential sale of its Imweru and Lubando gold projects.
Katoro added that its Haneti polymetallic project, in which Power Metals hold a 25% interest, is currently subject to plans for possible drilling at two priority targets focused on nickel sulphide and platinum group metals (PGM). The company is also exploring funding options for the site including further joint ventures and farm-in agreements.
"As we sit today, we have, subject to funding being secured, the Blyvoor JV offering the prospect of significant revenues from future gold production, the potential to monetise our interests in our Lake Victoria gold interests and upside from future exploration in respect of our Haneti Polymetallic deposit”, said Katoro executive chairman Louis Coetzee.
In mid-morning trading, shares in Power Metal were 3.3% higher at 0.4p, while Katoro was 1.5% higher at 3.5p.