Goldplat plc, the AIM listed gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to announce that it is increasing the Group's interest in Goldplat Recovery (Pty) Limited ('GRL'), its principal operating subsidiary, from 74% to 90.63% through the buy-back by GRL of GRL shares from its minority shareholders.

GRL has two minority shareholders, Amabubesi Property Holdings Proprietary Limited ('Amabubesi') and Dartingo Trading 161 Proprietary Limited ('Dartingo'), who respectively hold an 11% and a 15% interest in GRL. Following a notification received from the two minority shareholders indicating their intention to dispose of their shareholdings, GRL has agreed to repurchase all of the Dartingo shareholding and 7.33% of the shares held by Amabubesi for ZAR 89.3 million (approximately GBP4.5 million). Amabubesi and Dartingo are companies connected with Goldplat's Non-Executive Director, Mr Sango Ntsaluba. Subsequent to the Transaction, GRL will issue to Aurelian Capital Proprietary Limited ('Aurelian'), a company associated with Mr Ntsaluba, shares amounting to 4.90% of GRL, at the same valuation as the share repurchase, for ZAR 16 million (approximately GBP807,000) as described further below. As a result of the Transaction, Goldplat will own 90.63% of GRL and Mr Ntsaluba will own, directly and indirectly, 9.37% of GRL.

The consideration for the repurchased shares of ZAR 89.3 million (approximately GBP4.5 million) will be settled in two instalments, with 50% settled when the first payment is received from the funding arrangement with Nedbank as described below and the remainder not later than 180 days thereafter. Separately GRL has agreed with the minority shareholders to bring forward the settlement date of the second instalment as far as is practical for GRL. The net cost to GRL of the Transaction will be ZAR 73.4 million (approximately GBP3.7 million), and Goldplat's share of the net cost of the Transaction to GRL will be 90.63%, effectively resulting in its additional 16.63% interest in GRL costing Goldplat ZAR 66.52 million (approximately GBP3.35 million).

The Transaction values GRL at ZAR 400 million (approximately GBP20.2 million). For the year ended 30 June 2020, GRL made a post-tax profit of ZAR 90.3 million (approximately GBP4.55 million) and had net assets of ZAR 227 million (approximately GBP11.7 million).

Funding Arrangements

The Transaction will be financed in part through a South African Rand denominated bank facility of ZAR 60 million (approximately GBP3.02 million) provided by Nedbank, of which 50% will be drawn within the next 30 days and the remainder 180 days later. The remainder of the consideration will be settled through a set-off against the existing Amabubesi vendor loan of ZAR 12.6 million (approximately GBP635,000) outstanding to the Group with the balance being paid in cash.

The principal on the bank facility will be repayable monthly over 36 months. The interest payable on the facility will be the South African Prime Rate plus 1.75%.

As a condition of the facility from Nedbank, the Group's facility with Scipion, currently standing at GBP33,000, will be settled in full and its securities over GRL will be cancelled.

Further to above, GRL will grant security over its debtors as well as have a negative pledge over its moveable and any immovable property and a general notarial bond over all movable assets of GRL will be registered. The Group will further enter into a limited suretyship for ZAR 60 million (approximately GBP3.02 million), in favour of Nedbank.

Contact:

Werner Klingenberg

Tel: +27 (82) 051 1071

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