Business
Signing of term sheet for sale of Kilimapesa Gold
Signing of term sheet for sale of Kilimapesa Gold.
About this update from Goldplat Plc
[{"type":"text","content":"\n \n \n RNS Number : 7343U\n Goldplat plc\n 31 July 2020\n \n \n \n \n G\n oldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration\n \n \n \n \n \n \n \n \n 31 July 2020\n \n \n \n \n \n \n Goldplat\n \n \n \n plc\n \n \n \n \n (\n \n \n 'Goldplat',\n \n \n t\n \n \n he\n \n \n \n 'Group'\n \n \n or\n 'the\n \n \n Company')\n \n \n \n \n \n \n Signing of binding term sheet for sale of Kilimapesa Gold Pty Limited (\"Kilimapesa\")\n \n \n \n \n \n \n \n \n \n \n \n G\n oldplat plc (\"Goldplat\"), the AIM quoted gold producer, with international gold recovery operations located inSouth Africa and Ghana and an underground mining operation in Kenya, is pleased to announce the signing of a binding term sheet between its subsidiary Gold Mineral Resources Pty Limited (\"GMR\") and Mayflower Capital Investments Pty Limited (\"Mayflower\") for the sale of 100% of the share capital of Kilimapesa Gold Pty Limited (\"Kilimapesa\"). Kilimapesa owns the assets and licences of the Kenyan underground mining operation.\n \n \n \n \n \n Under the binding term sheet GMR has conditionally agreed to sell Kilimapesa to Mayflower for an initial consideration of USD1,500,000 to be satisfied by the issue of shares to that value in Mayflower. In addition, GMR is entitled to receive a 1% net smelter royalty on future production from Kilimapesa capped at USD1,500,000. 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 (\"UKco\"), 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. \n \n \n \n \n \n GMR is supportive of Mayflower's plans and strategies for the Kilimapesa operations and has agreed to escrow its shares in Mayflower/UKco for a minimum 12 months period, whilst Mayflower completes the recapitalisation and recommencement of the gold mining and processing operations.\n \n \n \n \n \n The term sheet is subject to a number of conditions ...