This archive report was first published on 20 July 2021.
On July 20, 2021, Goldplat Plc, a UK-based mining company with interests in South Africa, Ghana, and Burkina Faso, announced plans to pay royalties and surplus cash to shareholders as it nears completion of the sale of the Kilimapesa gold mine in Kenya.
Shares in Goldplat rose 14% to 7.99 pence in London on the day of the announcement, giving the company a market capitalization of £13.6 million.
Goldplat, a gold recovery services company based in London and Benoni, South Africa, said it has no further material calls on its cash flows to invest in gold mining following the disposal of the Kilimapesa mine.
As a result, the company will distribute cash left over after paying for operational and development requirements, as well as any royalties it receives from the mine.
Goldplat is entitled to a 1% net smelter royalty on all production from the mine, up to a maximum of $1.5 million.
The company completed the $1.5 million sale of Kilimapesa to Mayflower Gold Investments Limited in April 2021.
Mayflower is set to be taken over by Papillon Holdings PLC, after which Goldplat will receive $450,000 in cash and the rest in Papillon shares.
The UK Financial Conduct Authority approved Papillon's prospectus to be readmitted to the London Stock Exchange on Monday, a condition for the reverse takeover.
The Kilimapesa gold mine, located in the Migori Archaean Greenstone Belt, has a total of 8,715,291 tonnes at 2.40 g/t of gold for 671,446 ounces of gold at 1 g/t.
