Skip to content

Katoro Gold Share Price Rallies After Raising £815k

Sam Boughedda trader
Updated 8 Nov 2021

Gold and nickel exploration and development company Katoro Gold (LON: KAT) announced Monday that it has raised £815,000 via the issue of 81.5 million new shares at 1p per share.

Each placing share also has one warrant attached, which is exercisable at 1.5p per warrant, with an exercise period of 24 months from the issue date.

Also Read: The Best Gold Stocks to Buy

Katoro said the money raised will primarily be used to fund the advancement of the Haneti Nickel Project, where it intends to commence a diamond-drill drilling campaign. 

The AIM-quoted company currently has 2 projects in Africa, the previously mentioned Haneti Project in Tanzania and the Blyvoor Gold joint venture in South Africa. 

Katoro's share price rose to a high of 1.1p on the announcement. It is currently trading at 1p per share, up over 11%. However, Katoro's stock price is still down over 50% for the year to date. 

Should you invest in Katoro Gold shares?

Katoro Gold shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are KAT shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.