African Mining Network

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AMN - KENYA: Kilimapesa on care and maintenance

Goldplat plc, the AIM-listed gold producer, with international gold recovery operations based in South Africa and Ghana and a gold mine in Kenya, has put the Kilimapesa Gold Project (KPG) operations in Kenya on care and maintenance. The company is now seeking to raise the external funding required to develop the operations.

Goldplat will continue to engage with the stakeholders of KPG, including large creditors and employees, whilst seeking the external funding required.

The company has received substantial support from a number of the engaged stakeholders, who committed to not demand payment from KPG in the next six months.

Goldplat plc CEO Werner Klingenberg said: “I believe that putting Kilimapesa on care and maintenance until the required external funding can be raised, is best for all stakeholders involved.

“We will be focusing on expanding our profitable recovery operations whilst maintaining our commitment to secure the relevant external funding for the KPG. I look forward to updating the market and stakeholders as soon as enough progress has been made.”

Goldplat has engaged with the Kenyan Revenue Authority to discuss the payment of the company’s Value Added Tax claims, with a cumulative value in excess of a GBP1 million.  Although the Kenyan Revenue Authority acknowledges the validity of a material part of the claim no repayments have been made to date.

In addition, the company continues to hold talks with a number of parties interested in investing in KPG and will provide an update once enough progress has been made in the discussions.

It is expected that KPG will be re-classified as an asset held for sale in the consolidated results for the year ended June 30, 2019, and that goodwill in investments held in Gold Minerals Resources Limited, the group’s intermediate holding company, will be reassessed in line with these developments.

The performance of the company’s gold recovery operations at Goldplat Recovery (Pty) Limited remains strong.

With losses at KPG and the current activity levels at Gold Recovery Ghana Ltd (GRG), the company anticipates a loss from operating activities for the full year, approximately in line with the loss incurred for the half-year ended December 31, 2018.