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New Migori gold miner in Sh218m expansion plans

Wednesday April 28 2021

migori

Small-scale gold miners in Migori County. FILE PHOTO | NMG

London-listed gold miner Goldplat has completed the sale of its Migori-based gold miner Kilimapesa Gold to Mayflower Gold Investments.

Goldplat said the completion of the transaction would enable it to focus on its recovery operations and Mayflower Gold’s parent company Mayflower Capital Investments Pty Limited (‘Mayflower’) to accelerate its investment into Kilimapesa.

Mayflower said it would deploy about $2 million (Sh218 million) towards meeting Kilimapesa’s capital expenditure and working capital requirements following the purchase.

“We believe that it was opportune for us to complete the transaction at this stage to allow the Mayflower team to implement their strategic initiatives and to ensure the success of the Kilimapesa mine for all stakeholders involved,” said Goldplat chief executive Werner Klingenberg in a statement.

“This releases Goldplat from any further financial or management requirements and allows us to focus on our continued recovery operations.”

Goldplat’s search for new investors started after the multinational’s shareholders declined to provide additional capital to the venture.

Kilimapesa Gold’s project is located in the Migori Archaean greenstone belt.

The funding gap has led to losses at Kilimapesa whose production has dropped significantly. The company was the first to be issued with a commercial gold production lease in Kenya in November 2011 and targeted to produce 5,000 ounces of gold per annum.

It was also expected to catapult the country, which has artisanal and small-scale miners, to a mainstream gold-producing nation.

2021-04-28 08:00:00


www.businessdailyafrica.com


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