REG-Completion of Anumso Gold Project Earn-in Option Agreement <Origin Href="QuoteRef">GLDP.L</Origin>

GoldplatAnnouncement

15/09/2016 07:05

  
Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration
  
15 September 2016
  
Goldplat plc ('Goldplat' or 'the Company')
  
Completion of Anumso Gold Project Earn-in Option Agreement
  
Goldplat plc ("Goldplat" or "the Company"), the AIM quoted African gold producer, is pleased to announce that further to the announcement of 14 July 2016, on 14 September 2016 it has executed an earn-in option agreement (the "Agreement") with Ashanti Gold Corp. ("Ashanti") (formerly Gulf Shore Resources Ltd) which gives Ashanti the option for a US$3 million earn-in to Goldplat's 90% owned Anumso Gold Project in Ghana (the "Project"). 
  
Anumso Gold Project
  
Goldplat has a 90% interest in Anumso Gold Limited ("Anumso"), which is the holder of a ten-year renewable mining lease for gold and associated minerals covering an area of 29 sq km and located in the prospective Amansie East and Asante Akim South Districts of the Ashanti Region of the Republic of Ghana. The Project has a current JORC compliant resource of 166,865 oz of gold at 2.04g/t. In the year to 30 June 2016, the loss attributable to the Project was 5,539.
  
Terms of the Agreement 
  
The Agreement provides Ashanti with the exclusive option to earn 75% of Goldplat's interest in Anumso (67.5% of the overall project interest) in two instalments by expending an aggregate of US$3.0 million on exploration on the Project. 
  
The Agreement provides for two option periods. During the first 18 months of the Agreement (the "Initial Option Period") Ashanti will be given the option to earn 51% of Goldplat's interest in the Project by expending US$1.5 million on exploration on the Project (the "Initial Option"). Ashanti has the unilateral power to terminate the Agreement within the first 6 months of the Initial Option Period, and expenditure on the Project during this period will be at its sole discretion. Should Ashanti not exercise its right to terminate the Agreement during the first six months, it will be obliged to expend US$1.5 million on Project expenditure during the Initial Option Period or pay the deficiency to Goldplat. Should Ashanti meet the expenditure condition within the Initial Option Period, it will be entitled immediately to exercise its option and receive an initial 51% of Goldplat's interest in the Project (45.9% of the overall Project licence).
  
Conditional upon exercising the Initial Option, Ashanti will be entitled to give Goldplat notice that it intends to invest further in the project, which will trigger a second period of 12 months (the "Subsequent Option Period") in which it will be given the option to earn an additional 24% of Goldplat's interest by expending a further US$1.5 million on exploration on the Project during the Subsequent Option Period or by paying the deficiency to Goldplat (the "Subsequent Option"). Expenditure during the Subsequent Option Period will be at Ashanti's sole discretion and will not be reimbursable if Ashanti does not exercise the Subsequent Option. Should Ashanti meet the expenditure condition within the Subsequent Option Period, it will be entitled immediately to exercise its option and receive a further 24% of Goldplat's interest in Anumso (21.6% of the overall Project licence).
  
Ashanti will be the operator of the exploration and development programme during the option periods, with a Joint Technical Committee being established to agree upon the work programmes. If Ashanti does not give Goldplat notice to trigger the Subsequent Option Period, or once the Subsequent Option has been exercised, a Mining Company will be formed, under a Joint Venture Agreement and the mining licence will be assigned to this Company. Both parties will contribute pro-rata to further development with either non-contributing party being diluted. If either party is diluted to 10%, this interest will be converted into a 1.5% Net Smelter Return ("NSR"), which can be bought out by the other party for US$100,000 per 0.1% NSR, for an aggregate of US$1.5 million.
  
Gerard Kisbey-Green, CEO of Goldplat commented: "I am very pleased to be able to announce a transaction with Ashanti. Goldplat has not been able to make capital available for development of this project over the past few years. This Agreement will allow the Company to retain an interest in the developments of the Project with a competent partner, in Ashanti, committing capital, operating and enhancing the value of the Project." 
  
** 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 / Jen Clarke / Daniel Bush 
 Grant Thornton UK LLP (Nominated Adviser) 
 Tel: +44 (0) 20 7383 5100 
 Andrew Raca / Justin McKeegan 
 VSA Capital Limited (Broker) 
 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 considered to be inside information, for the purposes of Article 7 of EU Regulation 596/2014, prior to its release.
 


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Source: Goldplat plc via Globenewswire