South Africa Gold Recovery Operations Compliant with Black Economic Empowerment Rules
Goldplat plc, the AIM listed gold producer, announces that its South African subsidiary, Goldplat Recovery (Pty) Limited ('GRL'), is now compliant with the country's Black Economic Empowerment ('BEE') rules. This follows the sale of 15 per cent. of the issued share capital of GRL to Dartingo Trading 161 (Pty) Limited ('Dartingo'), a wholly owned subsidiary of Amabubesi Capital (Pty) Limited, which was formed for the purpose of this transaction. Compliance with BEE rules will facilitate Goldplat Recovery's business in South Africa , enabling it to acquire or apply for mining rights, as well as improving its competitive position when tendering for processing contracts.
The GRL shares were sold for a total consideration of ZAR 15.3 million (£1.01 million), of which, 50 per cent. is payable in cash on completion, and the balance of 50% is payable over a minimum period of three years, from dividends to be declared by GRL. At the same time a shareholders' agreement with Dartingo has been signed setting out the basis of future cooperation.
The BEE rules comprise the Broad-Based Black Empowerment Act No 53 of 2003, read together with the mining charter, BEE codes of good practice and the Mineral and Petroleum Resources Development Act. These require 15 per cent of GRL to be owned by Historically Disadvantaged South Africans by 1 May 2009, as stated in Goldplat's Admission Document. The percentage needs to increase to 26% by 1 May 2014.
Goldplat CEO Demetri Manolis said, "I am delighted to welcome Amabubesi Capital as our BEE Partner and I believe together we are ideally positioned to take advantage of a number of interesting mining opportunities within South Africa . Through this BEE partnership, GRL will have access to additional gold producers, as well as the owners of mining rights, which will allow GRL to expand on its current gold related asset base and activities in South Africa.
Interestingly, the share sale was completed at a higher price in comparison to many BEE transactions that take place, which highlights the value of the Company's South African operations."
For further information visit www.goldplat.com or contact:
Demetri Manolis, CEO Goldplat plc, Tel: +27 11 423 1203, Mob: +27 82 454 7392
James Joyce WH Ireland Limited, Tel: +44 (0)20 7220 1666
Isabel Crossley St Brides Media & Finance Ltd, Tel: +44 (0)20 7242 4477
Goldplat plc is an AIM-listed gold producer with operations in Africa . Its strategy is to create a mid-tier mining house focused on gold production leveraged through revenue generated from its gold recovery businesses.
The Company has two recovery business based in South African and Ghana, which, by safely disposing of 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 has expanded into gold mining through the acquisition of known deposits with targets of between 200,000 and one million ounces of ore contained. To this end, in a 50/50 JV, it is developing the potential of the highly prospective 213 sq km Lolgorien licence area located in the historically producing Migori Archaean Greenstone Belt in western Kenya , which is scheduled to commence production Q4 2008. A number of other potential projects across Africa are under review.
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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