Katoro Gold PLC (LON:KAT) has raised £100,000 for its Haneti nickel project in Tanzania through a placing and subscription of 10mln new shares.

The AIM-quoted gold and mineral explorer issued shares at 1p apiece to new and existing shareholders, including Katoro’s majority shareholder Kibo Energy which participated in the fundraise for £18,000.

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Chairman Louis Coetzee said the funds will allow Katoro to continue to advance the Company’s Haneti project in Tanzania and provide general working capital requirements.

The project covers a “highly-prospective” 5,000 sq km in central Tanzania in which Katoro is pursuing a chonolith type nickel sulphide discovery.

Coetzee added that Haneti is not only nickel focused and that “recent work has identified significant potential for Platinum Group Metals (notably Palladium), gold, copper, lithium and rare earth elements.”