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Goldplat subsidiary amends and renews US$2mln loan facility with Scipion Active Trading Fund

The loan facility will mainly be used as a working capital facility to support sourcing initiatives in West Africa and South America

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Goldplat PLC (LON:GDP) said its Gold Minerals Resources Limited (GMR) subsidiary has amended and renewed a US$2mln uncommitted, on-demand, revolving pre-export loan facility with Scipion Active Trading Fund, arranged by Scipion Capital Ltd, to provide it with working capital.

The AIM-quoted gold producer, with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, said the loan facility - first announced on 17 March 2017 - is available for period of 360 days under the amended facility and the term can be extended, or the size increased, on mutual agreement of both parties.

READ: Goldplat shares jump as firm reveals it was back in profit in third quarter

It noted that interest is payable on amounts drawn under the loan facility at a rate equal to LIBOR plus a margin of 9.75% per annum.

Security on the drawn amounts has been granted over Goldplat Recovery (Pty) Limited's tailings facility in South Africa, intercompany loan agreements, contracts and proceeds of sale with gold refiners, and the collection bank account operated by GMR for this purpose, the group added

The company noted that the loan facility will mainly be used as a working capital facility to support sourcing initiatives in West Africa and South America.

Werner Klingenberg, Goldplat’s CEO commented: "We have built a strong relationship with Scipion over the last few years and we are pleased with the way the facility has evolved with Scipion's understanding of our business.

“This should specifically give us further flexibility in our dealings in West Africa and South America going forward."

Quick facts: Goldplat PLC

Price: 5.95 GBX

AIM:GDP
Market: AIM
Market Cap: £9.96 m
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