Corporate News
Mining cabinet secretary Najib Balala. PHOTO | FILE
By ALLAN ODHIAMBO, aodhiambo@ke.nationmedia.com
In Summary
- Goldplat said it had signed a non-binding letter of intent for the acquisition of an undisclosed private gold exploration company.
- The company said in May last year said that it had identified three investors for a joint venture which would help develop its mine in Western Kenya through capital injection for expansion.
Africa-focused miner Goldplat said it is targeting an
acquisition to help expand its Kenyan operations near Lolgorien in
Trans Mara and curb losses.
The company said it had signed a non-binding letter of
intent for the acquisition of an undisclosed private gold exploration
company.
“The proposed acquisition is at an early stage and,
if completed, the management it would bring, amongst other things, will
have the skills and experience to assume responsibility for managing
and enlarging the Kilimapesa gold mine,” Goldplat chairman Brian Moritz
said.
The official said talks are ongoing to secure a funding partner for the planned upgrade of the Lolgorien project.
“Discussions to secure a funding partner for an
upgrade at Kilimapesa continue with a number of interested parties. We
are continuing to work hard to reduce the losses at Kilimapesa.
Various plant initiatives have been implemented
successfully to reduce overall cost and increase gold production,” the
chairman said.
“The board does not intend to use currently available funds for the expansion of Kilimapesa” he added.
Goldplat said in May last year said that it had
identified three investors for a joint venture which would help develop
its mine in Western Kenya through capital injection for expansion.
Operations at Kilimapesa mine in western Kenya
remain limited since June 2013 after the management opted to focus on
cash generating activities in South Africa and Ghana.
This was informed by the prevailing low gold prices
and uncertainty over the 35 per cent local ownership rule. Though set
for repeal under the Mining Bill 2013, it remains gazetted.
London-listed Goldplat, with assets in Kenya, South
Africa, Ghana and Burkina Faso, also said the licence for its Kenyan
operations has been renewed for one year.
“The mining licence for Kilimapesa Gold Mine was
renewed by the Minister for Mining in February 2015 for a further year,”
Mr Moritz said.
Goldplat plans to relocate its processing plant
near Lolgorien town as part of a strategy to boost the performance of
its Western Kenya mining operations.
The company said the plant will be moved to a
location next to its Kilimapesa mine to help save on overhead costs such
as those incurred when transporting the ore for processing. The present
processing plant is more than 10 kilometres from the mine
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