Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
12 January 2018
Goldplat plc ('Goldplat' or 'the Company')
Update on Negotiation with Rand Refinery
Goldplat, the AIM quoted gold producer with international gold recovery operations located in South Africa and Ghana and a gold mine in Kenya, is pleased to provide an update on its dispute with Rand Refinery. Further to the operational update on 11 December, in which Goldplat announced that Rand Refinery and Goldplat Recovery Limited ('GPL') had formally agreed on an arbitration process for the settlement of the dispute between the two parties, the Company is pleased to report that the parties have signed a Memorandum of Understanding ('MOU') regarding a proposed full and final Settlement Agreement. The MOU contains terms agreed to for inclusion in a Settlement Agreement, including agreement on an undisclosed amount to be paid by Rand Refinery to GPL in full and final settlement of the dispute. It is intended that the settlement be made the award in the ongoing arbitration process. Further details will be provided once the Settlement Agreement has been signed.
Gerard Kisbey-Green, CEO of Goldplat commented: "We are very pleased to have been able to progress discussions with Rand Refinery to this point and to have agreed terms for a settlement of the dispute. While the proposed amount is less than the full amount claimed by us, we believe that the proposed settlement and expected consequent expeditious conclusion of the arbitration process will not only alleviate the time and costs of the agreed legal process and free up valuable management time, but it also will allow business between the two parties to resume on the basis of a fresh start with renewed energy and focus in all areas to further strengthen and build the long standing relationship that exists between the two companies."
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For further information visit www.goldplat.com, follow on Twitter @GoldPlatPlc or contact:
|Gerard Kisbey-Green|| Goldplat plc|
|Tel: +27 (71) 8915775|
|Colin Aaronson / Jen Clarke/ Daniel Bush||Grant Thornton UK LLP (Nominated Adviser)||Tel: +44 (0) 20 7383 5100|
|Andrew Raca / Justin McKeegan|| VSA Capital Limited |
|Tel: +44 (0) 20 3005 5000|
|Charlotte Page / Susie Geliher|| St Brides Partners Ltd |
|Tel: +44 (0) 20 7236 1177|
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.
Goldplat plc is an AIM quoted gold producer with two market leading recovery operations in South Africa and Ghana and an operational gold mine in Kenya. The Company produced 42,857 ounces of gold during FY 2017, with 40,285 gold equivalent ounces sold and transferred, resulting in an operating profit from continuing operations of £2.9m for the year. This result does not benefit from the increased processing capacity that was achieved at the Kilimapesa Gold Mine towards the end of FY 2017, with operational profitability achieved during last two months of FY 2017. Accordingly, the Company believes it is well placed to build upon production and profitability during FY 2018.
The Company's strategy is focussed on utilising cash flow generated from its flagship gold recovery and mining operations to self-fund the sustainable growth and expansion of its niche gold recovery business model internationally. The Company is also committed to increasing its primary mining production output through acquisition / gaining interests in producing or near-production assets, preferably in Africa. Goldplat retains exposure to a small exploration project in Ghana, in which Ashanti Gold Corp. is earning an interest via an earn-in option agreement.