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Goldplat's South African subsidiary signs key compliance agreement

Goldplat, the AIM-listed gold producer in Africa, has reported that its South African gold recovery subsidiary, Goldplat Recovery(GPL) has signed a binding memorandum of agreement with its Black Economic Empowerment partner Amabubesi Property Holdings (Amabubesi).

Goldplat, the AIM-listed gold producer in Africa, has reported that its South African gold recovery subsidiary, Goldplat Recovery(GPL) has signed a binding memorandum of agreement with its Black Economic Empowerment partner Amabubesi Property Holdings (Amabubesi).

The agreement enables Amabubesi to increase its interest in GPL from 15% to 26%, a criterium which Goldplat said was required by South African Black Economic Empowerment legislation to be in place before May 1st 2014.

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The company said that the terms of the memorandum of agreement would see Amabubesi acquire a final 11% interest in GPL for a total consideration of ZAR 29.50m (£2.11m), with a 10% upfront cash payment on completion.

The remaining 90% would be vendor financed by GPL with Amabubesi repaying the loan using its pro-rata dividends, Goldplat added. It said that the transaction values GPL at ZAR 268.21m (£19.16m).

Russell Lamming, Chief Executive Officer of Goldplat, said: "We are delighted to have signed this binding memorandum of agreement with our Black Economic Empowerment partners, ensuring our market leading South African gold recovery operation is 100% Black Economic Empowerment-compliant well in advance of the May 1st 2014 deadline."

Goldplat's share price was up 1.23% to 10.25p at 09:09 on Wednesday.

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