Goldplat Plc, a UK-based mining company with interests in South Africa, Ghana and Burkina Faso, has said it will pay royalties and surplus cash to shareholders as it nears completion of the sale of Kilimapesa gold mine in Kenya.
Shares were up 14% to 7.99 pence in London on Tuesday afternoon, giving it a 13.6 million Sterling Pounds market capitalisation.
Goldplat is a gold recovery services company based in London and Benoni, South Africa.
The company said it has “no further material calls on its cashflows to invest in gold mining” following the disposal.
As a result, it will distribute cash left over after paying for operational and development requirements.
In addition, Goldplat will pay any royalties it receives from Kilimapesa as dividends. The company is entitled to a 1% net smelter royalty on all production from the mine up to a maximum of US$1.5 million.
Goldplat completed the US$1.5 million sale of Kilimapesa to Mayflower Gold Investments Limited in April.
Mayflower is set to be taken over by Papillon Holdings PLC, after which Goldplat will receive US$450,000 in cash and the rest in Papillon shares.
Goldplat is a step closer to receiving the proceeds after the UK Financial Conduct Authority on Monday approved Papillon’s prospectus to be readmitted to the London Stock Exchange – a condition for the reverse takeover.
Kilimapesa goldmine is located in the Migori Archaean Greenstone Belt and 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.