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Power Metal extends Haneti nickel option until August (POW)

28 May 2020 | by: Patricia Miller

AIM-listed metals explorer Power Metal Resources (LSE:POW) says it has extended its option to take 10% more of the Haneti polymetallic project in central Tanzania.

Power Metal will now have until August to make a final decision.

Katoro Gold (LSE:KAT) acquired Haneti from energy firm Kibo Mining in June 2018. Katoro has a 75% stake in the project while Power Metal has the remaining 25%. POW can improve this stake to 35% with a payment of £35,000 to Katoro.

Haneti is a polymetallic system covering around 5,000km2. It has identified potential for nickel, PGMs, copper, gold, lithium and rare earth elements.

The principal target zone is an 80km long ultramafic belt with grades from surface sampling up to 13.6% nickel and 2.33g/t combined platinum and palladium.

CEO Paul Johnson said: “The Haneti Project is a significant opportunity and it is important to structure ownership in a way that optimises the commercial pathway for the project.”

In an RNS the company noted the nickel sulphide potential at Haneti, adding that that in recent months Katoro had received further approaches by other companies to take an earn-in or joint venture on the project.

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