Goldplat plc Agreement Of Us$2m Loan Facility
18 March 2017 - 12:45AM
UK Regulatory
TIDMGDP
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
17 March 2017
Goldplat plc ("Goldplat" or "the Company")
Agreement of US$2m Loan Facility
Goldplat, the AIM quoted African gold producer, is pleased to announce
that its wholly owned subsidiary, Gold Mineral Resources Ltd ("GMR"),
has agreed a US$2 million uncommitted, on-demand, revolving pre-export
loan facility (the "Loan Facility") with Scipion Active Trading Fund
("SATF") arranged by Scipion Capital Ltd ("Scipion"). The Loan Facility
is available for a period of 360 days from the date of first draw-down
and the term can be extended, or the size increased, on the mutual
agreement of both parties. Interest is payable on amounts drawn under
the Loan Facility at a rate equal to LIBOR plus a margin of 9.5 per cent
per annum. Security on the drawn amounts has been granted over Goldplat
Recovery (Pty) Limited's ("GPL") tailings facility in South Africa,
intercompany loan agreements, contracts and proceeds of sale with gold
refiners, and the collection bank account operated by GMR for that
purpose. The security is granted by GMR and other subsidiaries of
Goldplat, with GPL signing as guarantor. Various positive and negative
undertakings and covenants are provided in the Loan Facility
documentation.
To date, the processing plant expansion at the Kilimapesa Gold Mine
("Kilimapesa") in Kenya has been funded out of internally-generated
operating cash flows. With stage one of the expansion commissioned, the
Company has decided to arrange the Loan Facility to recapitalise the
group's subsidiaries that have financed the work to date, and to fund
the expenditure of stage two of the processing plant expansion. Stage
two is expected to increase gold production at Kilimapesa from the
current stage one 60 tonnes per day to 120 tonnes per day, with a target
of achieving an annualised production rate after stage two of
approximately 4,500 ounces of gold.
Gerard Kisbey-Green, CEO of Goldplat commented: "We stated in our
interim results announced on 20 February 2017 that we were looking at
various forms of debt capital raising with a view to restructuring the
group balance sheet and I am very pleased to have agreed this loan
facility with Scipion. We will use the funds initially to complete stage
two of the processing plant expansion at Kilimapesa and to repay the
capital made available to Kilimapesa Gold Limited from other group
subsidiaries for goods and services rendered. The result will be a
cleaner and more appropriate group capital structure and availability of
working capital for our recovery businesses."
** ENDS **
For further information, visit www.goldplat.com, follow on Twitter
@GoldPlatPlc or contact:
Gerard Kisbey-Green CEO Goldplat plc Tel: +27 (71) 8915775
Colin Aaronson / Daniel Grant Thornton UK LLP Tel: +44 (0) 20 7383 5100
Bush (Nominated Adviser)
Andrew Raca / Justin VSA Capital Limited Tel: +44 (0) 20 3005 5000
McKeegan (Broker)
Charlotte Page / Susie St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Geliher (Financial PR)
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this announcement,
this inside information is now considered to be in the public domain.
About Goldplat
Goldplat plc, is an AIM quoted gold recovery services company with two
market leading operations in South Africa and Ghana. The Company's
strategy is focussed on utilising its cash flow generated from flagship
gold recovery operations in Africa to self-fund sustainable growth and
expansion of niche gold recovery business model. The Company also has a
small gold mining and exploration portfolio in Kenya, Burkina Faso and
Ghana and is evaluating various opportunities to create value or
monetise these assets.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Goldplat plc via Globenewswire
(END) Dow Jones Newswires
March 17, 2017 09:45 ET (13:45 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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