GDP Goldplat Plc

TIDMGDP

RNS Number : 3955K

Goldplat plc

04 January 2021

G ol dp lat plc / Ti cker: GDP / Index: AIM / Secto r: M in i ng & E x p l o rati on

04 January 2021

   Goldplat   plc 
   ( 'Goldplat', t he   '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 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 / Harrison     Grant Thornton UK LLP      Tel: +44 (0) 20 7383 
  Clarke/Seamus Fricker         (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 
 

Th e i n formati on co ntai ned w ith in t h is ann oun cement is deemed to const itute in s ide i nf o rma t i on as st ipu lated under the Market Abu se Regulati ons (EU) No. 5 9 6 / 2 0 1 4. Up on the pub l ication of this ann o u ncement, this in s i de i n fo rmati on is now c o n s i dered to be in the pub l ic domain.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DISUSVARAUUARRR

(END) Dow Jones Newswires

January 04, 2021 03:45 ET (08:45 GMT)

Goldplat (LSE:GDP)
Historical Stock Chart
From Jun 2024 to Jul 2024

Goldplat (LSE:GDP)
Historical Stock Chart
From Jul 2023 to Jul 2024