Goldplat PLC (AIM: GDP) said its wholly owned subsidiary Gold Mineral Resources Ltd has signed a Heads of Agreement with International Gold Exploration AB (IGE) to buy IGE’s 50 percent interest in their Kilimapesa Gold (Pty) Ltd joint venture for US$2.7 million.
Goldplat and IGE entered into a Joint Venture agreement in June 2007 under which Goldplat earned 50 percent of Kilimapesa Gold by advancing US$400,000 to develop the Kilimapesa gold mine under Goldplat's management. This resulted in small scale gold production commencing at the beginning of 2009.
As previously announced, Goldplat is working to establish a JORC compliant resource at Kilimapesa and increase the rate of production of gold.
Kilimapesa Gold's Lolgorien gold project is situated in South Western Kenya within the historically producing Migori Archaean Greenstone Belt. Its current plant is able to produce up to approximately 100 kilograms gold per annum.
The consideration for the acquisition of Kilimapesa Gold will be met from Goldplat's existing cash resources. Following completion of the Sale Agreement, Goldplat will finalise and announce its plans for the development of Kilimapesa Gold.