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Goldplat plc - Update on Sale of Kilimapesa

RNS Number : 3955K
Goldplat plc
04 January 2021
 

Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

 

 

04 January 2021

 

Goldplat plc
('Goldplat', the 'Group' or 'the Company')


Update on the sale of Kilimapesa

 

Goldplat plc (“Goldplat”), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an a held for sale underground mining operation in Kenya, is pleased to provide an update on the sale of Kilimapesa.

 

As announced on 31 July 2020, it has been conditionally agreed by Goldplat's subsidiary Gold Mineral Resources Ltd ("GMR") to sell Kilimapesa to Mayflower Capital Investments Pty Limited ("Mayflower")  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 standard segment of 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 the Company's subsidiary, Gold Mineral Resources Pty Limited ("GMR") and Mayflower are subject to a number of conditions precedent including the completion of due diligence being conducted by both Mayflower and GMR, the receipt of all necessary approvals, the finalising of formal agreements and the raising of equity by Papillon of at least USD4,000,000.

 

As announced on 1 October 2020, the term sheet was extended to 31 December 2020 based on certain conditions. The parties have now agreed to extend the term sheet and exclusivity period again, from 31 December 2020 to 28 February 2021. The value of the consideration shares to be issued has been increased from USD1,500,000 to USD1,750,000, and an option that can be exercised by Mayflower has been included for considerationto be paid in cash of USD1,500,000 rather than shares. The extension is also dependent on Papillion creditor deeds being executed by 15 January 2021, a majority of Papillon shareholders confirming pre-approval of the proposed reverse takeover by 20 January 2021 and GMR to being put in a position to complete due diligence by 25 January 2021.

 

To date, from signing of initial terms Mayflower has supported Kilimapesa with a subordinated loan of USD400,000 and has committed to support Kilimapesa with a further USD100,000, if required, before completion of transaction.

 

Werner Klingenberg, CEO of Goldplat commented: "Both parties are encouraged with the steady progress made, albeit slower than originally expected, due to delays outside both parties control and Goldplat remains confident in Mayflower's ability to complete transaction. We continue to receive the benefit of the Mayflower management team at Kilimapesa. 

 

For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:

 

Werner Klingenberg

 

Goldplat plc

(CEO)

 

Tel: +27 (0) 82 051 1071

Colin Aaronson / Harrison Clarke/Seamus Fricker

 

Grant Thornton UK LLP

(Nominated Adviser)

Tel: +44 (0) 20 7383 5100

 

James Joyce / Jessica Cave

 

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

goldplat@flagstaffcomms.com

 

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

 

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