LONDON (ShareCast) - (Sharecast News) - Gold and nickel explorer and developer Katoro said on Friday that drilling results from the RAB drill programme carried out at the Haneti project in its first half confirmed the results from previous exploration work done, which was the primary objective.
The AIM-traded firm, which is pre-revenue, said the latest results provided the confirmation desired, and thus refined its planning and budgeting of the diamond drilling programme, as well as the selection and engagement process for a suitable drilling contractor, now submitted for review and approval.

It raised £0.96m gross in the six month period ended 30 June through a placing and subscription of 48 million new shares at a price of 2p each.

Katoro said it was currently in the processes of compiling a comprehensive funding package under the Blyvoor joint venture, that would allow the construction, commissioning and operation of a mining and processing facility capable of processing 500,000 tonnes of tailings material per month, at an average life-of-mine gold grade of 0.29 grams per tonne and confirmed recovery of 51%, before incorporating recovery gains from the latest metallurgical optimisation tests.

Additionally, the board said the joint venture's total project resource size of 1,410,000 ounces of gold consisted of 500,000 ounces in the measured category, or 35.5%, 368,000 ounces in the indicated category, or 26.1%, and 542,000 ounces in the inferred category, or 38.4%.

Since the first half ended, Katoro said a period of "limited political unrest" in South Africa temporarily delayed the funding process when some of the short-listed parties requested additional time to re-assess the country risk profile.

However, the company said on Thursday that discussions with these potential funders had since resumed, with the joint venture partners hoping to conclude a final funding arrangement for Blyvoor during the latter half of 2021.

"Post reporting period, the company has continued to make significant progress on all aspects of the business," said executive chairman Louis Coetzee.

"A period of limited political unrest in South Africa temporarily delayed the funding process when some of the short-listed parties requested additional time to re-assess the country risk profile as a result of the unrest.

"However, the company is pleased to announce that discussions with these potential funders have since resumed and the joint venture partners hope to conclude a final funding arrangement for Blyvoor during the latter part of 2021."

Coetzee said the finalising of future engineering, procurement and construction (EPC), mining contractor and operator appointments would follow on conclusion of the funding.

"In conclusion, I am optimistic about Katoro and its prospects and look forward to a productive and exciting second half of 2021."

At 0806 BST, shares in Katoro Gold were down 5.88% at 0.8p.

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