Aim-listed Katoro Gold prioritised resource development at its Haneti project, in Tanzania, during the year ended December 31, 2023, owing to it being mindful of funding constraints.
Early in the year, Katoro successfully raised £150 000 (gross), which was used for ongoing working capital and to conclude the project assessment process.
After a successful diamond drill programme and analysis of deep-seated rock data at the Haneti project in 2022, consolidation of all data and the geological model for future exploration was done.
Discussions with potential partners regarding Haneti will resume this year, though funding uncertainties impaired the process during 2023, Katoro reports.
Further, a joint venture agreement (JVA) with Lake Victoria Gold (LVG) established a framework for the Imweru gold project, which is also located in Tanzania.
Under the terms of the JVA, LVG will hold an 80% stake in the project and Katoro the balance, but, according to Katoro, LVG is in default of its agreed capital contribution, which was due on or before December 31.
Katoro says it is currently evaluating its options without prejudice.
Katoro says 2023 has further been marked by a continued, focused effort to solidify the company’s position through a process of identification and selection of strategic opportunities in the realm of precious and critical mineral exploration.
Katoro’s loss for the period of £613 860 was a decrease from the loss of £1.25-million in the previous year.
This was owing mainly to a decrease in administrative expenses; a decrease in explorational expenditure; and lower impairments.
Post year-end, a comprehensive strategic revitalisation plan was implemented which involved a refreshed board of directors, strategic advisory support and a revised funding plan.
Also, Katoro successfully secured £825 000 in financing during February.
The influx of funds provides a solid foundation for implementing the revitalisation plan and propelling the company forward to a sustainable future, Katoro avers.