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Goldplat plc (LON:GDP), the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana, has announced an operational update for the six months ended 31 December 2020.

Recovery operations achieved a combined operating profit for the six months ended 31 December 2020 of £3,042,000 (31 December 2019: £2,810,000).  Within this, the South African operation achieved an operating profit of £2,200,000 (31 December 2019: £2,659,000) and the Ghana operation increased operating profitability by more than 5-fold to £842,000 (31 December 2019: £151,000).

The following events have contributed to continued profitability during the six months –

South Africa

·    During the period, there has been significant investment of time and resources in gathering data to optimize our current production lines in South Africa and also on our Tailings Storage Facility (TSF). These investments contributed to a reduction of operating profit year-on-year. The goal remains to establish production lines that can operate profitability on a sustainable resource.

·    Capital expenditure in the amount of GBP 180,000 was incurred on the further optimisation of the largest milling and Carbon-in-Leach (‘CIL’) processing unit with the addition of equipment to optimise the recovery from carbon contaminated material.  We will start seeing results from current investment towards the end of this quarter. In the interim we succeeded in sourcing better quality material that will support production through this circuit during the 3^rd quarter, with January already showing improved production numbers.

·    Normal operating costs increased, specifically as a result of electricity price increases, more water used from the Rand Water Board and rental of yellow machinery for material handling purposes in addition to higher security and engineering costs.

·    The arrangements made to transport our staff in a hygienic and safe manner as a result of Covid-19 restrictions, cost the South African subsidiary an additional £75,000.

·    We also evaluated an alternate PGM resource at some cost.  We achieved mixed results but will continue our endeavours to penetrate and pursue this market.

·    In South Africa we expect that approval for the construction of the new TSF will be received by July, and we plan to start pre-construction work during the fourth quarter.  In the interim, a further GBP80,000 of capital expenditure has been incurred to extend the deposition area and to manage the current TSF whilst the new TSF is being constructed, at an estimated cost of GBP700,000.

·    The test work on re-processing the existing TSF has advanced to the point where we have established what we believe to be the optimal processing routes in terms of gold recovery, processing volumes and operating costs.  These options will now be evaluated by accredited technical facilities to obtain the data on which the final processing plan can be designed.

Ghana

·    We experienced a good supply from our regular clients during the period.  

·    Our efforts in Mali, Burkina Faso and Ivory Coast to secure additional sources of supply continue, with engagements at mine and Government level.

·    We have received a low-grade trial batch from another mine in Mali for evaluation purposes and initial results are encouraging.  By achieving a larger geographical spread with more clients, our objective is to have a steady supply to our plant in Tema from current production rather than ad hoc supplies from stockpiles.

·    We are still engaging with relevant authorities in Ghana on re-entering the processing and tolling of tailings material.

Kilimapesa Update

·    We are encouraged with the progress made during the last month on the sale of Kilimapesa to Mayflower. The transaction has been approved by a majority of Papillon shareholders, Papillon creditors deeds have been executed and we are in a position to complete the due diligence.

·    The approval processes in Kenya are progressing well.

We plan to release the unaudited consolidated financial statements for the six months ended 31 December 2020 in the beginning of March.

We remain committed to our strategy of increasing long term visibility of earnings in the recovery businesses through key initiatives. These key initiatives include:

·    improving our gold recoveries from lower grade contaminated material, effectively reducing the grade of the material we will be able to source economically. Reserves of lower grade materials are more readily available and, help to alleviate the sourcing risk;

·    Building strategic partnerships within the mining industry;

·    Evaluating the investment into larger tailings storage facility and additional mill and leaching capacity to enable us to reprocess our current TSF; and

·    Increased investment into sourcing initiatives and test work on a wider range of materials, including PGM discards.

Werner Klingenberg, CEO of Goldplat commented: “I am pleased to report continued operational profitability and especially the improved operational performance in Ghana.  We are investing time and resource to achieve our goals of sustainable supply and profitability that can form the base for the declaration of dividends in future.

The sale of Kilimapesa is progressing well and we will keep market updated during February as the transaction advances.

Goldplat plc (LON:GDP), 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, has provided 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 to sell Kilimapesa to Mayflower Capital Investments Pty Limited 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 (LON:PPHP), 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 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. 

Goldplat plc (LON:GDP), the AIM quoted gold producer with international  gold recovery operations located in South Africa and Ghana, has announced that following its announcement on 09 December 2020, the Company will hold an investor and analyst conference call today 30^th December 2020, at 17:00 (UK Local time) .

The Company’s Chief Executive, Werner Klingenberg, will host the call followed by a question and answer session.

To participate in this conference call, please dial in to the following:

Standard International Access

Tel: +44  (0)20 3003 2666

UK Toll Free

Tel: 0808 109 0700

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Goldplat

Shortly following the conference call, a recording will be available to download from the Company website   Read More »

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and a held for sale mining operation in Kenya, has announced its preliminary unaudited results for the year ended 30 June 2020.

Operational Highlights

The preliminary unaudited results for the year ended 30 June 2020 reflect the impact of our strategy to focus on the recovery operations and to divest from our exploration and mining portfolio to maximize shareholder value and ensure strong returns to shareholders in future. The Group produced a strong and much improved operational result for the year ended 30 June 2020 from continuing operations with:

·      Profit before tax for the year from continuing operations increased to £5,666,000 (including a non-cashflow impairment loss of £295,000), versus a restated profit of £1,017,000 during the prior period;

·      As a result, the profit after tax from continuing operations increased, by a factor of 10 to £3,305,000(Restated 2019: £305,000);

·      The group net current assets at 30 June 2020 strengthened during the period to £5,216,000 from a restated balance of £3,577,000, with the cash position increasing to £3,141,000 (2019: £2,367,000);

·      The conditional agreement we announced on 31 July 2020 for the sale of Kilimapesa (“KPG”), once completed, provides Goldplat an equity interest in the prospective acquirer without being required to provide further finance or management time;

·      Due to the strategic decision to discontinue exploration and mining activities and divest from KPG, KPG and the equity investment in Anumso have been classified as discontinued operations. As a result, a loss from discontinued operations for the period of £5,270,000 (2019: £2,778,000) has been recognized, which includes the non-cashflow impairment of goodwill relating to KPG of £967,000, the non-cashflow impairment loss of £2,218,000 of KPG assets noted above and the non-cashflow impairment of the equity investment into Anumso of £660,000.

·      The results for the prior year have been adjusted to:

o  Recognized the foreign currency translation reserve loss of £381,000 at 30 June 2019, attributable to the non-controlling interest in South Africa. The foreign currency reserve loss was previously included in the exchange reserve and not allocated to non-controlling interest.

o  Recognize the decommissioning asset with net book value at 30 June 2019 of £438,000 in respect of the environmental rehabilitation obligation. The future cost of decommissioning was previously included in the statement of profit or loss.

o  Recognize the loss of control in Anumso during the prior year. In the previous period Anumso was consolidated, but the re-assessment of the circumstances indicated a change to the elements of control, finding the basis of consolidation not appropriate. The prior year have been adjusted to include Anumso as an equity investment.

·      None of the prior year adjustments had a cashflow impact and more detail on these have been provided in note 8 of the preliminary results attached.

Goldplat Recovery (Pty) Ltd (‘GPL’) – South Africa

·      GPL had an exceptional year, supported by the increase in the gold price and a reduction in operating costs, and increased its operational profits by 102% to £5,624,000 (Restated 2019: £2,790,000). Revenues decreasing by 8%, to £15,900,000 (Restated 2019: £17,342,000), which is attributable to a month’s loss of production as a result of Covid-19 pandemic;

·      Sourcing risk has been managed during the period by adding an additional 3 clients and strengthening our good relationships with major producers;

·      Significant strides have been made during the period, through research and development, in finding the optimal solution for reprocessing of the two million tons Tailing Storage Facility (“TSF”);

·      With GPL’s TSF reaching full capacity, £210,000 was invested to improve its stability. Further capital cost of circa £200,000, will allow us to extend the use of the facility until June 2021. Due to the Covid-19 pandemic the process to approve the application for an adjoining TSF has been delayed and approval is expected to be received towards end of March 2021.  

Gold Recovery Ghana Limited (‘GRG’) – Ghana

·      GRG returned to profitability, posting an operating profit before finance cost of £724,000 (2019: loss of £536,000).

·      The sourcing efforts in West Africa and further afield returned value during the period through two new contracts, one recurring and the other one-off. The increase in feed material resulted in revenues increasing from £4,427,000 during the previous financial period to £8,909,000.

·      GRG has established stronger relationships with West African and South American clients during the period, improving our future outlook of supply. 

Werner Klingenberg, CEO of Goldplat plc commented: “The current financial period for Goldplat has not just been a year of turnaround performance in its continuing operations, but also a transitional period, with renewed focus on key initiatives in its recovery operations, whilst moving away from mining. The strong performance in the recovery operations reinforced our decision to divest from our exploration and mining portfolio. The discontinuing of our exploration and mining segment gave us the opportunity to impair Group assets to provide a clear view of the financial position of our continuing operations. The increase in supply of material during the period and the strengthening of our customer base, supported by the higher gold prices, has provided us with a good platform to drive our strategic initiatives during the next period and to return value to shareholders again.” 

Chairman’s Statement

I am pleased to introduce strong and much improved Group operational results for the year ended 30 June 2020 and to advise shareholders of significant progress in the Group’s development towards sustainable profitability from our two precious metal recovery facilities in South Africa and Ghana.

Profit for the year from continuing operations was £5,666,000 before taxation (Restated 2019: £1,017,000) and

£3,305,000 after taxation (Restated 2019: £305,000) and net current assets at 30 June 2020 stood at £5,216,000 (Restated 2019: £3,577,000) including cash of £3,141,000 (2019: £2,367,000).

Whilst the gold price has clearly been a strong contributor to these results, that is far from being the whole story behind this year’s operational success. The efforts that Goldplat’s highly skilled team has been putting in to improving operational efficiency, developing new processes, widening the types of material we can profitably accommodate and developing our customer base are all contributing to these results, and should stand us in good stead irrespective of the gold price.

This year’s results reflect the accounting adjustments arising from discontinued operations, being principally the Kilimapesa gold mine in Kenya. The conditional agreement we announced on 31 July 2020 for the sale of Kilimapesa, once completed, provides for Goldplat to have an equity interest in the prospective acquirer without being required to provide further finance or management time. Goldplat’s management can then fully concentrate on the precious metal recovery businesses which have always been the source of the Group’s profitability and positive cash flows.

We also still have work to do to ensure that the strong operational results convert into sustainable returns to shareholders. Aside from the one-off accounting loss arising from discontinued operations, the Group’s results continue to be affected by a high effective tax rate (this year 42% of profit from continuing operating activities (2019: 72%) and the effects of foreign exchange rates fluctuating across the four currencies in which we operate and sterling in which we present our results. We are looking at ways of simplifying the group structure to help address these issues so that we may realise our ambition of distributing cash surplus to the Group’s operational requirements and growth plans to shareholders.

On 14 May 2020, I was pleased to announce the appointment of Gerard Kisbey-Green as a non-executive director, following dialogue with a substantial shareholder of the Company. Gerard had previously served as an Executive Director from 2014 until his resignation in 2019. He has extensive experience of the Group and its stakeholders and has much to contribute to the Group’s development. Notwithstanding the travel restrictions and dislocation which the current pandemic has brought on, I believe that your Board of Directors has continued to function effectively over the period, meeting with the usual regularity (using teleconferencing where necessary) and receiving reports on all the Group’s multi-national operations in the normal manner.

The pandemic also brought on new challenges to operating our facilities in South Africa and Ghana in a safe way for all our employees and local communities.  The relevant regulatory authorities have been helpful and active in assisting businesses such as ours to meet these challenges, for which we are most appreciative.  Operations in South Africa halted for approximately a month, in the circumstances not a long period, and I am pleased to report that both operations returned to near full production and near full employment within a matter of weeks. In addition to addressing the challenges of the pandemic, our performance in respect of our on-going health, safety and environmental obligations has continued to be strong.

My profound thanks to all Goldplat’s employees in South Africa, Ghana, South America and Kenya for the ways in which they have risen to the current challenges, as well as to my fellow board members and Goldplat’s advisors for their contributions. We look forward with optimism.

Matthew Seymour Robinson

Chairman

30 November 2020

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and a held-for-sale mining operation in Kenya, has announced an operational update for the first quarter ended 30th September 2020.

Group

·    The Group maintained good operating results with the South African operations achieving a profit for the Q1 of £1,123,000 (Q1, September 2019 – £1,074,000) and the Ghanaian operations a profit of £280,000 (Q1, September 2019 – £23,000).

·    The initial results from a pilot plant test on Tailings Storage Facility (“TSF”) material has been encouraging and is bringing us closer to finalising a detailed plan for the processing of TSF.

·    Significant progress has been made in the sourcing efforts in the Group, with a constant flow of material received in Ghana, a new contract signed in South America and positive progress made in securing more material in Mali as detailed below.

·    Similarly, in South Africa, material sourced for our surface material and woodchip circuits exceeded production capacity, maintaining visibility of stock on site and on contract to more than 24 months.

·    The relationships with the plants supplying other by-products remain in good standing, with constant flow of by-products, despite the challenges of Covid-19.

·    Progress is being made on obtaining final approval for extending our current TSF and an additional £90,000 will be incurred to allow for the increased volumes that can be deposited until the extended TSF has been established.

·    The cash requirement for Kilimapesa has been reduced with the signing of a binding term sheet with Mayflower as announced previously.

Goldplat Recovery (Pty) Limited (“GPL”)

·    The South African operation achieved an operating profit for the Q1 of £1,123,000 (Q1, September 2019 – £1,074,000).

·    During Q1, part of our plant facility was modified to improve the processing of the TSF material on a production scale. The initial results are encouraging and exceed the results from initial lab scale test work, and we will continue measuring performance going forward. The aim is to build up a data base on production and recoveries from representative areas on the TSF using different parameters in the plant sufficient to support the investment required to reprocess the TSF material. 

·    One of our producing mills has been allocated to this modified plant and as a result 1kg per month of gold production was sacrificed during the period. The plant was commissioned towards end of September and it is expected that the TSF material processed from it is expected to exceed the 1kg sacrificed by repurposing the mill.

·    The company continued improving its the largest carbon-in-leach circuit to enable the processing of lower grade contaminated material. During the period we installed an upgraded screening unit, sacrificing 3kg of gold production during the installation phase. With the modification on the underground circuit completed, the full benefit of this improvement should be reflected during the 2^nd quarter.  

·    Additional costs of £50,000 were incurred under Covid-19 procedures introduced to transport our staff in a hygienic and safe manner to and from work. With South Africa moving to lockdown level 1, these measures have been reduced. We are glad to report that all employees who tested positive for Covid-19 have recovered and are back at work and we are currently unaware of any cases in our workforce, which is constantly monitored.

·    Surface material and woodchips sourced during Q1 exceeded production capacity, increasing the feed material on site and contracted to more than 24 months. We received good volumes of by-products from a number of clients.

·    The processing of the current TSF at the required scale still remains dependent on securing a final deposition site and a plant. Management still believe that processing the TSF through an existing third-party facility should create most value for shareholders and reduce the initial capital requirement.

·    The application to extend our current TSF for deposition of current production is progressing and indications from authorities are that we should have feedback towards the end of January 2021. A further GBP90,000 will be spent on managing our current facility until a larger facility can be established at an estimated build cost of GBP700,000.

·    Our extensive exploration and testing campaign to secure more long-term feed material for the carbon-in-leach circuits is continuing and we spend close to £75,000 during Q1 on various test work. This is in line with GPL’s strategy to ensure long term visibility of supply, profitability and growth.

Gold Recovery Ghana Limited

·    The Ghanaian operation maintained its improved production levels achieved during the previous financial period and achieved an operating profit for the first quarter of £280,000 (Q1, September 2019 – £23,000).

·    The sustained and improving operating results is due to a constant flow of material received from clients in Ghana, Mali and South America.

·    During the quarter we have made progress on our strategic focus of securing more material from West Africa. We are currently finalising terms on a large batch of material from a mine in Mali but this remains dependent on receiving export approval from the government of Mali.

·    We also signed a new contract with a company in South America, with material currently being shipped and due to arrive in Ghana during the second quarter.

·    The application for a license to procure and toll-treat tailings material in Ghana has been delayed by the Covid-19 lockdown but we are pleased that engagement on this has re-started.

Kilimapesa (Pty) Limited

·    As previously announced, a binding conditional term sheet for the sale of Kilimapesa was signed with Mayflower during the quarter, with completion of the transaction subsequently extended until 31 December 2020. 

·    Operating losses at Kilimapesa for the first quarter were £232,000 (Q1, September 2019 – £127,000), of which £118,000 related to depreciation and amortisation.

·    The operations started processing artisanal tailings material from the area on 22 August 2020 largely financed by Mayflower.

·    The Group does not expect to contribute any further cash to Kilimapesa before completion of the proposed sale.

Werner Klingenberg, CEO of Goldplat commented: “I am pleased by the continued profitability of the recovery businesses, and encouraged by strong performance in Ghana during the quarter. Additionally, I believe we can achieve an even stronger performance from the operation in South Africa and I am confident that the changes made to the circuits during the 1^st quarter will return positive results during the remainder of the financial period.

The progress made on our planning for processing the TSF is positive and I’m confident that the pilot plant data should assist us in accelerating the processing of the TSF.

The Covid-19 pandemic remains a risk for the business and we will maintain procedures to protect the health and safety of all our people and the continuity of the business.”

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an underground mining operation in Kenya, has provided an update on the publication of its preliminary results for the year ended 30 June 2020 and on the sale of Kilimapesa.

Further to the announcement of 1 October 2020, the preliminary results announcement for the year ended 30 June 2020 is now expected to be released at the beginning of November 2020. Due to the current environment, the finalisation of elements of the audit are taking longer than anticipated.

Operational results from the Recovery Businesses remain in line with those announced during the previous quarterly updates, including the announcement of 28 July 2020.  In line with the strategy to focus on the Recovery Businesses, the Group’s investments in our exploration assets are being impaired and Kilimapesa is being classified as a “held for sale asset”.

Additionally, we anticipate releasing the operational update for the first quarter of the financial year ending 30 June 2021 towards the end of next week.

Sale of Kilimapesa

As announced on 1 October 2020, the Company’s subsidiary Gold Minerals Resources Limited and Mayflower Capital Investments Pty Limited have agreed to extend the exclusivity period under the term sheet as announced on 31 July 2020 from 30 September 2020 to 31 December 2020 subject to the following conditions having been met by 30 October 2020, failing which the exclusivity period will expire on 30 October 2020, but can be waived and amended at GMR’s sole discretion:

·    Mayflower advancing the balance of the amount of USD 165,000 which remains outstanding on the agreed amount of USD 300,000 by 9 October 2020, which has been earmarked to fund the processing of tailings.

·    Preparation by 9 October 2020, of a draft reorganisation plan for Papillon, the UK entity which ultimately intends holding the Kilimapesa asset.

·    Mayflower and Papillon providing GMR with all documentation, assistance and responses required by GMR to complete the due diligence of Mayflower and Papillon by 30 October 2020.

·    A draft LSE listing prospectus and fixed timetable for completion being presented by 30 October 2020.

Mayflower has advanced the balance of USD165,000 and submitted a draft re-organisation plan for Papillon, as per the agreement, and the expectation is that all the due diligence information for Mayflower and Papillon and the draft listing prospectus will be provided soon.

Werner Klingenberg, CEO of Goldplat commented: “Conducting the review and reporting of annual results under the restrictions and additional considerations brought about by the Covid-19 pandemic has been challenging.  That being said, the impact on our Recovery operations have been minimal and I look forward to sharing an operational update on the first quarter of the financial year ending 30 June 2021 in the coming week

With the receipt of the balance of cash from Mayflower, Kilimapesa should have sufficient working capital to continue its tailings operations until the end of December 2020, the date by which the sale is due to be completed.”   

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an underground mining operation in Kenya, has provided an update on the publication of its preliminary results for the year ended 30 June 2020 and the sale by its subsidiary, Gold Mineral Resources Pty Limited of 100% of the share capital of Kilimapesa Gold Pty Limited. Kilimapesa owns the assets and licences of the Kenyan underground mining operation.

Annual Results

The results for the year ended 30 June 2020 are expected to be released towards the middle of October 2020.

Sale of Kilimapesa Gold (“Kilimapesa”)

As announced on 31 July 2020, it has been conditionally agreed 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 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 GMR and Mayflower is subject to a number of conditions precedent including the completion of due diligence to be conducted by both Mayflower and GMR, the receipt of all necessary approvals, the finalising of formal agreements and the raising of at least USD4,000,000 of funding which will be used towards meeting capital and working capital costs for the planned re- commencement of mining and processing operations.

The transaction has progressed well, with number of conditions precedent being met, specifically the restart of the operation, payment of exclusivity fee and finalisation of Mayflower’s due diligence. The parties have now agreed to extend the term sheet and exclusivity period from 30 September 2020 to 31 December 2020 subject to the following conditions having been met by 30 October 2020, failing which the exclusivity period will expire on 30 October 2020, but can be waived and amended at GMR’s sole discretion;

· Mayflower advancing the balance of the amount of USD 165,000 which remains outstanding on the agreed amount of USD 300,000 by 9 October2020, which has been earmarked to fund the processing of tailings.

· Preparation by 9 October 2020, of a draft reorganisation plan for Papillon, the UK entity which ultimately intends holding the Kilimapesa asset.

· Mayflower and Papillon providing GMR with all documentation, assistance and responses required by GMR to complete the due diligence of Mayflower and Papillon by 30 October 2020.

· A draft LSE listing prospectus and fixed timetable for completion being presented by 30 October 2020.

Werner Klingenberg, CEO of Goldplat commented: “We are delighted that the sale process with the Mayflower team is progressing well and we will continue to support the acquisition which should be finalised by 30 December 2020, whilst we build on the valuable contributions made by the Mayflower team to the operation.

We are also looking forward to sharing the financial results for the year ended 30 June 2020″

Goldplat plc (LON:GDP), the AIM quoted gold producer, with international gold recovery operations located in South Africa and Ghana and an underground mining operation in Kenya, has provided an update on the sale by its subsidiary, Gold Mineral Resources Limited of 100% of the share capital of Kilimapesa Gold Pty Limited. Kilimapesa owns the assets and licences of the Kenyan underground mining operation.

As announced on 31 July 2020 and 3 September 2020, GMR has conditionally agreed to sell Kilimapesa to Mayflower Capital Investments Pty Limited for an initial consideration of USD1,500,000 to be satisfied by the issue of shares to that value in Papillon Holdings Plc (LON:PPHP).

Papillon today announced that good progress is being made towards completing the Transaction, with Mayflower confirming the completion of its technical and legal due diligence, with positive outcomes.

The terms of the agreement between GMR and Mayflower remain unchanged and the agreement is subject to a number of conditions precedent including the completion of due diligence, the receipt of all necessary approvals, the finalising of formal agreements and the raising of equity by Papillon of at least USD4,000,000.

Werner Klingenberg, CEO of Goldplat commented: “The input from Mayflower’s management on the restart of the operation has been valuable and the resulting gold production is positive for all stakeholders involved. We are delighted with the positive outcome from Mayflower’s due diligence and GMR should be completing their due diligence soon.”