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.

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.

MF

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Bank of England hikes key interest rate to 4.25%
UK Economy

Bank of England hikes key interest rate to 4.25%

The Bank of England raised rates by 0.25% following a surprise jump in inflation.
23 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

The Bank of England raised rates to 4.25%, its 11th consecutive increase. Does the base rate have further to go?
23 Mar 2023