Goldplat has concluded the sale of its subsidiary Kilimapesa Gold, which owns the Kilimapesa mine, in Kenya, to Mayflower Gold Investments.
The AIM-listed company said the conclusion of the transaction will allow it to focus on its recovery operations and Mayflower Gold's parent company Mayflower Capital Investments to accelerate its investment into Kilimapesa.
Goldplat has operations in South Africa and Ghana.
" Mayflower has proven its commitment over the last eight months to Kilimapesa Gold Mine through the investment of capital and management resources and has raised further cash of $2 million to advance the project," said Goldplat chief executive Werner Klingenberg.
"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."
It said the initial consideration receivable by Goldplat is in the form of a secured debenture of $1.5-million, to be satisfied by cash and/or the issue of shares to that value in Papillon Holdings payable on Papillon's readmission to trading on the LSE following completion of the reverse takeover of Mayflower Gold with 30% of the initial consideration payable in cash.
With the completion of the sale of Kilimapesa, Goldplat is entitled to receive a 1% net smelter royalty on all production from Kilimapesa up to a maximum of $1.5-million on any future production from the mine.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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