Aim-listed Katoro Gold has announced conditional equity financing of £317 500 through the issue of 635-million new ordinary shares, at a placing price of 0.05p per placing share.

Katoro says the placing is conditional on approval from Katoro shareholders on various resolutions including on a change in the par value of the company's ordinary shares, thereby allowing the issue of the placing shares.

The company says a further announcement will be made once the details are finalised.

Subject to the completion of the placing, Katoro has also reported a heads of terms agreement to acquire 100% of 31 Explore, which controls an extensive portfolio of mining claims in Ontario, Canada.

Katoro has also appointed Patrick Cullen as CEO with immediate effect.

Meanwhile, 31 Explore co-founding director James Tosh is proposed to be appointed as nonexecutive director of the company following the general meeting.

Cullen says this expansion of Katoro's critical minerals exploration portfolio is a significant step forward on an exciting pathway.

He describes Ontario as a “world-class mining jurisdiction,” among the top ten jurisdictions in the world for mineral exploration spending and well-positioned to be a global supplier of critical minerals.

Cullen says Katoro has prioritised six project areas prospective for lithium and one project area prospective for rare earth elements (REE) and niobium and the location of these projects provides excellent synergy with the company’s 100%-owned White Pine uranium project.

“The acquisition, in exchange solely for premium priced warrants, is a very positive outcome and eliminates the immediate cash outlay or immediate share dilution typical of such transactions and enables a greater allocation of cash towards advancing the company's exploration goals,” he says.

Cullen notes that the selection of these properties is the result of focused research by 31 Explore, and the prospectivity is underpinned by the systematic evaluation of an extensive range of Ontario Geological Survey data and mapping and other sources.

He says historic exploration activity provides other encouraging information; however, it is important to note that these areas are historically underexplored for the critical mineral deposits it is searching for.

“Looking to the future, the company is also in discussions with Planetary AI, a company that specialises in the application of the AI-driven Xplore system, to identify and rank exploration targets.

“What has clearly emerged in the time leading to this deal is the strategic alignment between Katoro and 31 Explore as demonstrated by the deal terms and excellent working relationship . . . the co-founding directors of 31 Explore [Tosh and Jack Dann].

“I have spent significant time working through the various data and I am pleased to retain Dann's part-time services as a geological and exploration consultant providing technical support on the new claims. Tosh is proposed to join the board as nonexecutive director and his wealth of operations and back-office experience will be welcomed.

“The board acknowledges the continued support of shareholders, we look forward to reigniting Katoro's exploration activities, delivering exploration success and shareholder value,” says Cullen.