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Goldplat updates on the sale of Kilimapesa

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 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.

As announced on 31 July 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 Mayflower and that Mayflower has separately entered into an agreement under which it will assign its rights and obligations under the term sheet to a company listed on the London Stock Exchange, 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 Company can now confirm that UKco is Papillon Holdings plc (LON:PPHP), which has today announced a binding Heads of Agreement for the reverse takeover of Mayflower, including Kilimapesa, and the re-admission of Papillon to the Standard Listing Segment of the London Stock Exchange. The transaction is subject, inter alia, to the completion of due diligence, documentation and compliance with all regulatory requirements, including the Listing and Prospectus Rules and, as required, the UK Takeover Code.

Furthermore, Mayflower has paid the USD50,000 exclusivity fee under the binding term sheet and has a team on site in Kenya to progress the transaction.

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 to be 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.

Werner Klingenberg, CEO of Goldplat commented: “We are delighted with the positive progress made by Mayflower to date, specifically the signing of agreement with Papillon. The Mayflower technical management team is on site completing their due diligence and overseeing the start-up of the plant.

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