Acquiring Gold Project in Bur

RNS Number : 4273E

Goldplat plc

18 December 2009

 



Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration

21 December 2009

Goldplat plc ('Goldplat' or 'the Company')

Agreement to Acquire the Nyieme Gold Project in Burkina Faso

Goldplat plc, the AIM quoted gold producer, has entered into an agreement with Sanu Exploration (BVI) Limited ('Sanu'), a wholly owned subsidiary of NGEX Resources Inc, to acquire Sanu's option over the 246 sq km Nyieme Gold Project ('Nyieme') located in Burkina Faso.  The Nyieme exploration licence includes known high-grade quartz vein structures, with drill core results showing up to 17.83 g/t gold over one metre and 11.67 g/t over five metres.

Under the terms of the agreement, Goldplat will make payments to Sanu totalling USD 215,000, comprising USD 50,000 immediately, USD 20,000 on or before 10 May 2010 and USD 145,000 on or before 1 October 2010, in return for the sole, immediate, exclusive and irrevocable option over Nyieme. The option period lasts until 1 October 2011.  In addition, Goldplat is required to fund expenditure at Nyieme of USD 250,000 in the period up to 20 October 2010 and a further USD 250,000 in the period up to 1 October 2011.  

On completion of the expenditure outlined above, Goldplat can exercise its option and earn all Sanu's rights, free and clear of all encumbrances.  These rights effectively comprise 100% of the right, title and interest in Nyieme.  Thereafter, Sanu will retain a 2% net smelter royalty based on the actual gross amount of payment received by Goldplat or its affiliate from the purchaser without deduction for any cost other than treatment and smelter charges. A further 1% net smelter royalty will be payable to a previous holder of the rights.

Goldplat's CEO Demetri Manolis said, "The acquisition of Nyieme is the next step in our strategy of utilising the cash generated from our Ghanaian and South African recovery operations to build a portfolio of mining projects with production potential. We will now build a detailed development plan, which we will announce to the market in the New Year, highlighting the project's potential and how we intend to fast-track it into production."

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For further information visit www.goldplat.com or contact:

Demetri Manolis, CEO	Goldplat plc	Tel: [phone]
James Joyce	WH Ireland Limited	Tel: [phone]
David Porter	WH Ireland Limited	Tel: [phone]
Bill Sharp	Alexander David Securities Limited	Tel: [phone]
David Scott	Alexander David Securities Limited	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]
Isabel Crossley	St Brides Media & Finance Ltd	Tel: [phone]

Notes:

Goldplat is an AIM-listed gold producer with operations in Africa.  Its strategy is to consolidate its position as a gold producer in Africa and build itself into a highly profitable mid-tier gold company, leveraged through revenue generated from its gold recovery businesses.   

The Company has two recovery businesses based in South Africa and Ghana producing circa 21,000 ounces of gold per year.  These safely dispose of mining by-products, and fulfil an important aspect of the mines' environmental management programmes.  The South African plant is located near the centre of the East Rand Goldfield and raw material feedstocks are sourced from many of the major South African mining companies, including AngloGold Ashanti, Goldfields, Harmony, DRD Gold and other smaller producers.  The Ghana plant, located in the free port of Tema, provides access to raw materials from mines in Mali, Guinea, Burkina Faso, Benin, Cote D'Ivorie, Senegal, the DRC and Mauritania, as well as Ghana. 

Goldplat is looking to increase its asset base through the acquisition of known deposits with targets of between 200,000 and one million contained ounces.  To this end, it is developing its wholly owned Kilimapesa Gold mining project, located in the historically producing Migori Archaean Greenstone Belt in western Kenya.  Kilimapesa Gold commenced initial production in January 2009 and has announced an initial JORC-compliant resource of 1.65Mt at 2.44 g/t Au for 129,000 oz Au at a cut-off grade of 1 g/t Au for all categories.

 

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