Aim-listed energy and precious minerals exploration and development company Katoro Gold has, following an extensive technical review of further opportunities at its 65%-owned Haneti project, in Tanzania, decided to cease further investment in the project given the levels of capital needed to develop those opportunities.
The company will instead shift its focus to its critical minerals portfolio in Ontario, Canada.
Katoro has now completed the acquisition of 31 Explore, which controls a portfolio of mining claims in Ontario that are prospective for a range of critical minerals, include lithium and rare earth elements (REEs).
Katoro has assigned priority to a subset of properties within the total claims package, which comprise six lithium projects and one REE project. These priority projects have a combined total area of 8 548 ha and are located in the same region as the company's 100%-owned White Pine uranium project.
"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," comments Katoro CEO Patrick Cullen.
Meanwhile, Aim-listed Power Metal Resources, which owns 35% of the Haneti project, has supported Katoro's decision to halt investment, noting that it concurs that the technical review does not indicate sufficient prospectivity at Haneti and therefore does not support further capital expenditure.
"We do not feel that a sufficiently compelling opportunity exists at Haneti and have therefore decided to exit from the investment. We continue to examine the portfolio closely and will not be afraid to take similar decisions elsewhere at the appropriate time," says Power Metal CEO Sean Wade. 