Business
GBP 5.5 million Placing
GBP 5.5 million Placing.
About this update from Goldplat Plc
[{"type":"text","content":"\n \n\n\n\n\n Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration\n 13 December 2010\n Goldplat plc ('Goldplat' or 'the Company')\n Placing\n\nGoldplat plc, the AIM quoted gold producer focussed in Africa, is pleased to\nannounce that it has conditionally raised £5.5 million before expenses from the\nplacing ('the Placing') of 55,000,000 ordinary shares of the Company ('the\nPlacing Shares') at a price of 10p per share through its broker W H Ireland\nLimited.\n\nBackground and reasons for the Placing\n\nThe Company has historically funded its mining exploration activities from the\ncashflows generated from its two gold recovery operations in South Africa and\nGhana. The Company has secured what it considers to be prospects with\nsignificant resource and production potential.  It now wishes to accelerate the\ndevelopment of its assets and in particular the Nyieme Gold Project ('Nyieme\nProject') in Burkina Faso and, subject to completion of its acquisition, the\nBanka Gold Project ('Banka Project') in Ghana towards JORC standard resources\nand fund their feasibility studies. The funds received from the Placing will\nallow the Company to develop these assets at a much greater pace than if it had\nto fund them from its internally generated cashflow. In addition the Company\nbelieves it will gain access to further gold mining assets and wishes to have\nsufficient cash resources to pursue future acquisitions.\n\nUse of Proceeds\n\nThe net proceeds of the Placing of approximately £5.2 million is expected be\napplied as follows:\n\n·        approximately £1 million will be used for the purchase of the Banka\nmining lease via the proposed acquisition of Gulf Coast Resources Limited\n·        approximately £2 million is expected to be used for exploration,\ndrilling and feasibility studies on the on the Banka Project\n·        approximately £2 million is expected to be used for exploration,\ndrilling and feasibility studies on the Nyieme Project\n·        the balance of the funds of approximately £0.2 million after placement\nexpenses is for general working capital purposes\n\nThe Placing\n\nThe Placing is ...