Katoro Gold plc and Power Metal Resources plc have exited the Haneti nickel-lithium joint venture in central Tanzania due to the high levels of expenditure required.
ONTARIO
Katoro holds 65% of Haneti and Power Metal owns 35%.
The early-stage project last underwent diamond drilling in 2022, with results failing to show economically significant nickel but revealing lithium and tantalum potential.
After a technical review, Katoro today said it would stop further spending in Haneti while Power Metal chief executive Sean Wade, also non-executive chairman of Katoro, added that Power Metal would also exit the investment.
Katoro plans to focus on its new portfolio following today’s completed acquisition of 31 Explore Ltd, which owns 641 mining claims in Ontario, and on “potential new opportunities”.
Priority will be given to six lithium and one rare earth element projects over a combined 8,548 hectares (85.48 km2) of 410 claim blocks across 11 properties.
The projects are located in the same region of Northwest Ontario as Katoro’s 100%-owned White Pine uranium project.
The company has issued 375,000,000 warrants at a premium price of 0.10p and 375,000,000 priced at 0.15p to 31 Explore, as per the heads of agreement signed in February.
31 Explore co-founder, also Power Metal’s chief operating officer, James Tosh will be appointed to the Katoro board following customary checks.
Chief executive Patrick Cullen said that the company would focus on short-term exploration goals and develop a “robust pipeline of targets that will lead to exploration success”.
“I recently attended the PDAC [Prospectors & Developers Association of Canada] conference in Toronto where I met, in person, with a range of local service providers.
“We are now in the process of appointing service contracts.
“It’s an exciting period ahead for the company and I’m looking forward to hitting the ground running once the field season opens in Northwest Ontario in late April or early May.”