Goldplat plc Update on sale of Kilimapesa (9577P)

TIDMGDP

RNS Number : 9577P

Goldplat plc

23 February 2021

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

23 February 2021

   Goldplat   plc 
   ( 'Goldplat', t he   'Group' or 'the   Company ') 

Update on Sale of 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 provide an update relating to the sale of the Kilimapesa Gold Mine in Kenya ("Kilimapesa").

Goldplat is pleased to report that formal legal documentation relating to the acquisition of total issued share capital of Kilimapesa by Mayflower Gold Investments Limited ("Mayflower Gold") a wholly owned subsidiary of Mayflower Capital Investments Pty Limited (the "Transaction") has been signed by all parties. The formal documentation includes a Share Purchase Agreement ("SPA") entered into by Gold Mineral Resources Limited ("GMR") (a wholly owned subsidiary of Goldplat) with Mayflower Gold. The SPA sets out the terms of the Transaction under which Mayflower Gold will acquire 100% of the entire issued share capital of Kilimapesa which holds the licences and assets that form the producing Kilimapesa Gold Mine and processing operations located in Narok County, Kenya. The completion date for the Transaction has been changed from 28 February 2021 to 31 March 2021.

A deed of novation and royalty agreement has also been entered into by GMR and Mayflower Gold. The deed of novation relates to the transfer of all rights and obligation of GMR in the loan agreement between GMR and Kilimapesa to Mayflower Gold as described in the Company's announcement of 31 July 2020. Under the royalty agreement, GMR has the right to receive a 1% gross net smelter return royalty subject to a maximum of US$1,500,000 on future gold produced and sold by Kilimapesa.

Completion of the Transaction remains subject to a number of conditions being satisfied including, amongst other things:

   --    Receipt of various regulatory approvals in Kenya; 
   --    Approval of Kilimapesa's prospecting license; 

-- The completion by Mayflower Gold of the Reverse takeover of Papillon Holdings plc including a fundraising of at least USD 4 million; and

-- initial consideration to be satisfied by the issue of shares to that value of GBP1,750,000 in Papillon Holdings Plc or GBP1,5000,000 in cash payment to GMR;

Werner Klingenberg, CEO of Goldplat commented: "I am pleased to report that all legal documentation has been signed and that progress are being made on the number of conditions to be satisfied."

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: [phone] 
                                (CEO) 
 Colin Aaronson / Harrison     Grant Thornton UK LLP      Tel: [phone] 
  Clarke/Seamus Fricker         (Nominated Adviser)        5100 
 James Joyce / Jessica         WH Ireland Limited         Tel: [phone] 
  Cave                          (Broker)                   1666 
 Tim Thompson / Mark Edwards   Flagstaff Strategic and    Tel: [phone] 
  / Fergus Mellon               Investor Communications    1474 
                                                           [e-mail] 
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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February 23, 2021 02:00 ET (07:00 GMT)