Goldplat plc, the AIM quoted gold producer focussed in Africa, is pleased to announce that it has conditionally raised £5.5 million before expenses from the placing ('the Placing') of 55,000,000 ordinary shares of the Company ('the Placing Shares') at a price of 10p per share through its broker W H Ireland Limited.
Background and reasons for the Placing
The Company has historically funded its mining exploration activities from the cashflows generated from its two gold recovery operations in South Africa and Ghana. The Company has secured what it considers to be prospects with significant resource and production potential. It now wishes to accelerate the d e v elopment of its assets and in particular the Nyieme Gold Project ('Nyieme Project') in Burkina Faso and , subject to completion of its acquisition, the Banka Gold Project ('Banka Project') in Ghana t o w ards JORC standard resources and fund their feasibility studies. The funds received from the Placing will allow the Company to develop these assets at a much g reater pace than if it had to fund them from its internally generated cashflow . In addition the Company believes it will gain access to further gold mining assets and wishes to have sufficient cash resources to pursue future acquisitions.
Use of Proceeds
The net proceeds of the Placing of approximate l y £5.2 million is expected be applied as follows:
approximately £1 million will be used for the purchase of the Banka mining lease via the proposed acquisition of Gulf Coast Resources Limited
approximately £2 million is expected to be used for exploration, drilling and feasibility studies on the on the Banka Project
approximately £2 million is expected to be used for exploration, drilling and feasibility studies on the Nyieme Project
the balance of the funds of approximate l y £0.2 million after placement e xpenses is for general w orking capital purposes
The Placing is conditional, interalia, on the resolutions being passed by shareholders of the Company at the General Meeting scheduled to take place on 29 December 2010. The Placing Shares will rank pari passu in all respects with the Company's existing ordinary shares in issue. Following admission to trading on AIM Goldplat's total issued share capital will be 167,120,000 ordinary shares. The Placing shares will represent 32.9% of the enlarged issued share capital of the Company.
A circular convening the General Meeting is being sent to Shareholders today, and a copy will be available shortly on the Company's website at www.goldplat.com
Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM . It is e xpected that such Admission will occur at 8.00 a.m. on Thursday 30 December 2010.
Admission is subject to the passing of the resolutions at the General Meeting and to the Placing A g reement the Company has entered into with WH Ireland Limited becoming unconditional in all respects (save only for Admission) and not being terminated in accordance with its terms.
The Placing Shares will, when issued , rank pari passu in all respects with the Existing Ordinary Shares including the right to receive dividends and other distributions declared following Admission.
Goldplat CEO Demetri Manolis said, " We are delighted to have completed this placing which will help support the next stage of our growth strategy of building a mid-tier gold mining company . It is our intention to fast-track the development of our highly prospective Nyieme gold project in Burkina Faso , which has already yielded positive results of 19.1 g/t over a width of 116cm towards defining a JORC compliant resource, and to complete a feasibility study. We are also looking forward to complete the acquisition of the Banka gold project in Ghana , where early work indicates the strong potential of the licence area. We believe that the project represents a substantial and exciting gold prospect in the Ashanti Region of Ghana, a prime district for gold project development.
"2011 is set to be a fruitful year for the Company, with gold production from our South African and Ghanaian recovery operations performing strongly we are now set to widen our exploration and development activities in Africa and advance our gold mining projects towards production. I believe that with these foundations in place, Goldplat will experience solid growth during the year, which will in turn further strengthen our already strong investment case."
For further information visit www.goldplat.com or contact:
|Demetri Manolis, CEO||Goldplat plc||Tel: +27 (0) 11 423 1203|
|James Joyce||WH Ireland Limited||Tel: +44 (0) 20 7220 1666|
|David Porter||WH Ireland Limited||Tel: +44 (0) 20 7220 1666|
|Bill Sharp||Alexander David Securities Ltd||Tel: +44 (0)20 7448 9820|
|David Scott||Alexander David Securities Ltd||Tel: +44 (0)20 7448 9820|
|Felicity Edwards||St Brides Media & Finance Ltd||Tel: +44 (0)20 7236 1177|
|Isabel Crossley||St Brides Media & Finance Ltd||Tel: +44 (0)20 7236 1177|
Goldplat plc is an AIM-listed gold producer with operations in Africa . Its strategy is to consolidate its position as a gold producer in Africa and build itself into a highly profitable mid-tier gold company, leveraged through revenue generated from its gold recovery businesses.
The Company has two recovery businesses based in South Africa and Ghana, which, by safely disposing mining by-products, fulfil an important aspect of the mines' environmental management programmes. The South African plant is located near the centre of the East Rand Goldfield and raw material feedstocks are sourced from many of the major South African mining companies, including AngloGold Ashanti , Goldfields, Harmony, DRD Gold and other smaller producers. The Ghana plant, located in the free port of Tema, provides access to raw materials from mines in Mali , Guinea , Burkina Faso , Benin , Cote D'Ivorie, Senegal , the DRC and Mauritania , as well as Ghana .
Goldplat's strategy is to build itself into a highly profitable mid-tier gold producer, through the acquisition of known deposits with targets of between 200,000 and one million contained ounces. Kilimapesa Gold is a wholly owned subsidiary of Goldplat and is developing the potential of the 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone B elt in western Kenya . Kilimapesa Gold commenced initial production in January 2009 and an aggressive exploration and development programme has resulted in a maiden JORC compliant resource being reported in October 2009. In December 2009 Goldplat plc entered into an agreement with Sanu Exploration ( BVI) Limited ('Sanu'), a wholly owned subsidiary of NGEX Resources Inc, to acquire Sanu's option over the 246 sq km Nyieme Gold Project ('Nyieme') located in Burkina Faso . The Nyieme exploration licence includes known high-grade quartz vein structures, with drill core results showing up to 17.83 g/t gold over one metre and 11.67 g/t over five metres. Goldplat has started a programme of trenching and diamond drilling in order to prove up and expand the existing mineralisation.
Goldplat is a profitable, African gold recovery services company . . .More info...
Goldplat has two profitable gold recovery businesses in South Africa and Ghana . . .More info...
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