Goldplat plc Completion of Sale of Kilimapesa Gold (Pty) Ltd (5101W)
April 26 2021 - 1:00AM
UK Regulatory
TIDMGDP
RNS Number : 5101W
Goldplat plc
26 April 2021
G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng
& E x p l o rati on
26 April 2021
Goldplat plc
( 'Goldplat', t he 'Group' or 'the Company ')
Completion of the Sale of Kilimapesa Gold (Pty) Limited
('Kilimapesa')
G ol dp lat pl c, the AIM quoted g o ld p r o ducer, w ith
internati onal g o ld reco very o perati ons l o cated in South Afr
i ca and Ghana, is pleased to announce that all conditions
precedent in respect of the sale of Kilimapesa, which owns the
Kilimapesa Gold Mine in Kenya, to Mayflower Gold Investments
Limited ('Mayflower Gold'), have been either met or waived and that
the sale of Kilimapesa (the 'Transaction') is now complete. The
completion of the Transaction will enable Goldplat to focus on its
recovery operations and Mayflower Gold's parent company Mayflower
Capital Investments Pty Limited ('Mayflower') to accelerate its
investment into Kilimapesa.
In order to enable early completion of the Transaction, both
parties agreed to waive the requirement that Papillon Holdings plc
(LSE: PPHP) ("Papillon") completes its proposed reverse takeover of
Mayflower Gold ('RTO') and re-admission to trading on the London
Stock Exchange ("LSE").
The initial consideration receivable by Gold Mineral Resources
Ltd ("GMR"), Goldplat's subsidiary, is in the form of a secured
debenture of USD1,500,000, to be satisfied by cash and/or the issue
of shares to that value in Papillon payable on Papillon's
re-admission to trading on the LSE following completion of the RTO,
with 30% (USD450,000) of the initial consideration payable in cash.
In the event that Papillon is not re-admitted to trading on the LSE
by 16 July 2021, the full initial consideration of USD1,500,000
will become payable in cash and will attract interest of 4% with
effect from 1 January 2021.
As part the conditions to complete the Transaction, and
additional to the initial consideration, Mayflower has agreed to
pay USD150,000 of the loan balance outstanding from Kilimapesa to
GMR and Mayflower Gold and Mayflower have waived all further
conditions, specifically the conditions with regard to the renewal
of the prospecting license.
Earlier this month, Mayflower raised approximately USD2.00
million of funding and has undertaken to use this towards meeting
Kilimapesa's capital expenditure and working capital requirements.
In addition, Mayflower has secured a further GBP2.5m conditional on
completion of the RTO and re-admission of Papillon to trading on
the LSE.
Mayflower Gold have provided GMR with a debenture over their
assets, with Mayflower acting as guarantor and have committed to a
further charge to be provided by Kilimapesa over its assets for the
benefit of GMR. The Novation Agreement assigning to Mayflower Gold
the loan outstanding from Kilimapesa to GMR of circa USD10.00
million will only complete once the initial consideration of
$1,500,000 has been received.
With the completion of the sale of Kilimapesa, GMR is entitled
to receive a 1% net smelter royalty on all production from
Kilimapesa up to a maximum of $1,500,000, on any future production
from Kilimapesa.
Werner Klingenberg, CEO of Goldplat commented: "I am extremely
pleased that we have been able to complete the sale of Kilimapesa
to Mayflower Gold. Mayflower has proven its commitment over the
last 8 months to Kilimapesa Gold Mine through investment of capital
and management resources and has raised further cash of USD2.00m to
advance the project. We believe that it was opportune for us to
complete the transaction at this stage to allow the Mayflower team
to implement their strategic initiatives and to ensure the success
of the Kilimapesa Mine for all stakeholders involved. This releases
Goldplat from any further financial or management requirements and
allows us to focus on our continued recovery operations."
For further i n fo rmat i on v i s it www .g o ld p lat.com, f o
l l ow on Twitter @GoldPlatPlc or contact:
Werner Klingenberg Goldplat plc Tel: +27 (0) 82 051 1071
(CEO)
Colin Aaronson / George Grant Thornton UK LLP Tel: +44 (0) 20 7383
Grainger (Nominated Adviser) 5100
James Joyce / Jessica WH Ireland Limited Tel: +44 (0) 207 220
Cave (Broker) 1666
Tim Thompson / Mark Edwards Flagstaff Strategic and Tel: +44 (0) 207 129
/ Fergus Mellon Investor Communications 1474
goldplat@flagstaffcomms.com
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