Gold and nickel exploration and development company Katoro Gold PLC (AIM: KAT) has recently raised GBP 815,000 via the issue of new ordinary shares, to be utilized primarily to fund the further advancement of the Haneti Nickel Project in Tanzania.
In its press release, the company clarifies it intends to forthwith commence with a diamond-drill drilling campaign, and for working capital requirements.
The Haneti Project
Located in central Tanzania, the Haneti project is a polymetallic system with identified potential for nickel (sulphide and laterite), Platinum Group Metals, copper, gold, lithium and rare earth elements.
Katoro owns 65% of the project and the rest is owned by Power Metal Resources (LON:POW).
Exploration on the Haneti project has led to the discovery of two high-priority targets (Mihanza and Mwaka Hill) prospective for Ni-Cu-PGE sulphide mineralization located within an 80km long ultramafic belt.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented: “Power Metal is eager to see drilling commence at the Haneti Project targeting a large scale nickel and platinum group element (PGE) discovery. The Company is therefore pleased to see our partner Katoro Gold raise money for this purpose. We look forward to further announcements with regard to the planned drill programme and are working with Katoro in this regard.”
The mining of nickel in Tanzania is still in its infancy.
However, the country boasts the Kabanga Nickel Sulfide Deposit, one of the largest and richest undeveloped nickel sulfide deposits known at present, of unmatched scale and grade.