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Power Metal Resources PLC (LON:POW) shares rose on Wednesday as investee company Katoro Gold PLC (LON:KAT) agreed to sell its Imweru gold project.

Katoro has struck a deal to offload Imweru to Lake Victoria Gold for a staged consideration of US$1mln and a 1.5% net smelter royalty on all future gold production from the project.

AIM-listed Power Metal owns a 4.38% stake in Katoro Gold, along with 10mln warrants and a 25% interest in Katoro’s Haneti polymetallic project in Tanzania.

Shares in POW were up 8% to 0.23p on Wednesday afternoon.