Update on Sale of Kilimapesa
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
23 February 2021
Goldplat plc ('Goldplat' or 'the Company')
Update on Sale of Kilimapesa
Goldplat plc, the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to provide an update relating to the sale of the Kilimapesa Gold Mine in Kenya ("Kilimapesa").
Goldplat is pleased to report that formal legal documentation relating to the acquisition of total issued share capital of Kilimapesa by Mayflower Gold Investments Limited ("Mayflower Gold") a wholly owned subsidiary of Mayflower Capital Investments Pty Limited (the "Transaction") has been signed by all parties. The formal documentation includes a Share Purchase Agreement ("SPA") entered into by Gold Mineral Resources Limited ("GMR") (a wholly owned subsidiary of Goldplat) with Mayflower Gold. The SPA sets out the terms of the Transaction under which Mayflower Gold will acquire 100% of the entire issued share capital of Kilimapesa which holds the licences and assets that form the producing Kilimapesa Gold Mine and processing operations located in Narok County, Kenya. The completion date for the Transaction has been changed from 28 February 2021 to 31 March 2021.
A deed of novation and royalty agreement has also been entered into by GMR and Mayflower Gold. The deed of novation relates to the transfer of all rights and obligation of GMR in the loan agreement between GMR and Kilimapesa to Mayflower Gold as described in the Company's announcement of 31 July 2020. Under the royalty agreement, GMR has the right to receive a 1% gross net smelter return royalty subject to a maximum of US$1,500,000 on future gold produced and sold by Kilimapesa.
Completion of the Transaction remains subject to a number of conditions being satisfied including, amongst other things:
- Receipt of various regulatory approvals in Kenya;
- Approval of Kilimapesa's prospecting license;
- The completion by Mayflower Gold of the Reverse takeover of Papillon Holdings plc including a fundraising of at least USD 4 million; and
- initial consideration to be satisfied by the issue of shares to that value of GBP1,750,000 in Papillon Holdings Plc or GBP1,5000,000 in cash payment to GMR;
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to report that all legal documentation has been signed and that progress are being made on the number of conditions to be satisfied."
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For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
|Werner Klingenberg||Goldplat plc (CEO)||Tel: +27 (82) 051 1071|
|Colin Aaronson / Richard Tonthat / Ben AO Roberts||Grant Thornton UK LLP (Nominated Adviser)||Tel: +44 (0) 20 7383 5100|
|James Joyce / Jessica Cave / Lydia Zychowska||WH Ireland Limited (Broker)||Tel: +44 (0) 207 220 1666|
|Tim Thompson / Mark Edwards / Fergus Mellon||Flagstaff Strategic and Investor Communications||Tel: +44 (0) 207 129 1474
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