Business
South Africa Gold Recovery Operations BEE Compl...
South Africa Gold Recovery Operations BEE Compl....
About this update from Goldplat Plc
[{"type":"text","content":"\n \n\n\n\n Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining &\n Exploration\n6 October 2008\n Goldplat plc ('Goldplat' or 'the Company')\n South Africa Gold Recovery Operations Compliant with Black Economic\n Empowerment Rules\nGoldplat plc, the AIM listed gold producer, announces that its South\nAfrican subsidiary, Goldplat Recovery (Pty) Limited ('GRL'), is now\ncompliant with the country's Black Economic Empowerment ('BEE')\nrules. This follows the sale of 15 per cent. of the issued share\ncapital of GRL to Dartingo Trading 161 (Pty) Limited ('Dartingo'), a\nwholly owned subsidiary of Amabubesi Capital (Pty) Limited, which was\nformed for the purpose of this transaction. Compliance with BEE\nrules will facilitate Goldplat Recovery's business in South Africa,\nenabling it to acquire or apply for mining rights, as well as\nimproving its competitive position when tendering for processing\ncontracts.\nThe GRL shares were sold for a total consideration of ZAR 15.3\nmillion (£1.01 million), of which, 50 per cent. is payable in cash on\ncompletion, and the balance of 50% is payable over a minimum period\nof three years, from dividends to be declared by GRL. At the same\ntime a shareholders' agreement with Dartingo has been signed setting\nout the basis of future cooperation.\nThe BEE rules comprise the Broad-Based Black Empowerment Act No 53 of\n2003, read together with the mining charter, BEE codes of good\npractice and the Mineral and Petroleum Resources Development Act.\n These require 15 per cent of GRL to be owned by Historically\nDisadvantaged South Africans by 1 May 2009, as stated in Goldplat's\nAdmission Document. The percentage needs to increase to 26% by 1 May\n2014.\nGoldplat CEO Demetri Manolis said, \"I am delighted to welcome\nAmabubesi Capital as our BEE Partner and I believe together we are\nideally positioned to take advantage of a number of interesting\nmining opportunities within South Africa. Through this BEE\npartnership, GRL will have access to additional gold producers, as\nwell as the owners of mining rights, which will allow GRL to expand\non its current gold related asset base and activities in South\nAfrica.\nInterestingly, the share sale was completed at a higher price in\ncomparison to many BEE transactions that take place, which highlights\nthe value of the Company's South African operatio...