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.”
