Gerard Kisbey-Green, CEO of Goldplat PLC LON:GDP commented: “I am delighted to announce the signing of this LOI with GSR. The Anumso project is highly prospective and offers significant development opportunity, to which Goldplat wishes to maintain exposure. The current resource size and economics makes raising capital to develop a mine on the Project difficult in the short term, but the proposed earn-in arrangement with GSR allows for Anumso to be developed with the appropriate initial focus on increasing the size and quality of the resource, without the need for Goldplat to expend capital or utilise extensive management time. Accordingly we can realise value in the Project and retain upside, whilst focussing attention on our stated strategy to develop our Ghanaian recovery operations into a West African hub and a base off of which to continue business from elsewhere in Africa and to develop a South American business.”
Goldplat plc the AIM quoted African gold producer, is pleased to announce that it has signed a non-binding Letter of Intent (“LOI”) with Gulf Shore Resources Ltd (“GSR”) – a TSX-Venture Exchange (“TSX-V”) listed company (TSXV:GUL), to give GSR the option for a US$3 million earn-in to Goldplat’s Anumso Gold Project in Ghana (“Anumso” or the “Project”).
Anumso Gold Project
Goldplat has a 90% interest in Anumso, a ten year renewable mining lease for gold and associated minerals covering an area of 29 sq km and located in the highly prospective Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana. Anumso has a current JORC compliant resource of 166,865 oz of gold at 2.04g/t.
Terms of the earn-in
The LOI is intended to progress to a legally binding option agreement within 30 days following a normal due diligence period and is subject to receipt of approval by the Boards of Directors of both companies, the TSX-V, and regulatory approvals in Ghana related to the license. However, under the terms of the LOI, GSR will have the sole right, after 14 days, to elect to have the terms of the LOI binding on the parties, in which event this LOI shall become a binding agreement between GSR and Goldplat.
The intention is to provide GSR with the option to earn 75% of Goldplat’s interest in Anumso (67.5% of the overall project interest) by expending an aggregate of US$3.0 million on exploration on the Project over 2.5 years. The LOI provides for two option periods: in the first option period GSR will be given the opportunity to earn a 51% interest in the Project by expending US$1.5 million on exploration on the Project over 18 months, and in the second option period an additional 24% interest can be earned by expending a further US$1.5 million on exploration on the Project over the following 12 months.
GSR will be the operator of the exploration and development program during the option periods and the licenses will remain in Goldplat’s name. If GSR does not exercise the second option, a Joint Venture will be formed and both parties will contribute pro-rata to further development with either non-contributing party being diluted. If either party is diluted to 10%, this interest will be converted into a 1.5% Net Smelter Return (“NSR”), which can be bought out by the other party for US$100,000 per 0.1%, for an aggregate of USD1.5 million.
