Goldplat plc (LON:GDP), the AIM quoted gold producer with international gold recovery operations located in South Africa and Ghana and an underground mining operation in Kenya, has provided an update on the publication of its preliminary results for the year ended 30 June 2020 and the sale by its subsidiary, Gold Mineral Resources Pty Limited of 100% of the share capital of Kilimapesa Gold Pty Limited. Kilimapesa owns the assets and licences of the Kenyan underground mining operation.
The results for the year ended 30 June 2020 are expected to be released towards the middle of October 2020.
Sale of Kilimapesa Gold
As announced on 31 July 2020, it has been conditionally agreed to sell Kilimapesa to Mayflower Capital Investments Pty Limited for an initial consideration of USD1,500,000 to be satisfied by the issue of shares to that value in Mayflower and that Mayflower has separately entered into an agreement under which it will assign its rights and obligations under the term sheet to Papillon Holdings plc (LSE: PPHP) (“Papillon”), which is listed on the London Stock Exchange and which will, subject to the appropriate regulatory and shareholder approvals, seek to complete the acquisition and raise a minimum USD4,000,000 of funding for the development of Kilimapesa’s operations.
The terms of the agreement between GMR and Mayflower is subject to a number of conditions precedent including the completion of due diligence to be conducted by both Mayflower and GMR, the receipt of all necessary approvals, the finalising of formal agreements and the raising of at least USD4,000,000 of funding which will be used towards meeting capital and working capital costs for the planned re- commencement of mining and processing operations.
The transaction has progressed well, with number of conditions precedent being met, specifically the restart of the operation, payment of exclusivity fee and finalisation of Mayflower’s due diligence. The parties have now agreed to extend the term sheet and exclusivity period from 30 September 2020 to 31 December 2020 subject to the following conditions having been met by 30 October 2020, failing which the exclusivity period will expire on 30 October 2020, but can be waived and amended at GMR’s sole discretion;
· Mayflower advancing the balance of the amount of USD 165,000 which remains outstanding on the agreed amount of USD 300,000 by 9 October2020, which has been earmarked to fund the processing of tailings.
· Preparation by 9 October 2020, of a draft reorganisation plan for Papillon, the UK entity which ultimately intends holding the Kilimapesa asset.
· Mayflower and Papillon providing GMR with all documentation, assistance and responses required by GMR to complete the due diligence of Mayflower and Papillon by 30 October 2020.
· A draft LSE listing prospectus and fixed timetable for completion being presented by 30 October 2020.
Werner Klingenberg, CEO of Goldplat commented: “We are delighted that the sale process with the Mayflower team is progressing well and we will continue to support the acquisition which should be finalised by 30 December 2020, whilst we build on the valuable contributions made by the Mayflower team to the operation.
We are also looking forward to sharing the financial results for the year ended 30 June 2020″