Goldplat plc / Ticker: GDP / Index: AIM / Sector: Mining & Exploration 4 April 2017 Goldplat plc ('Goldplat' or 'the Company')
Rand Refinery Dispute Update
On 11 July 2016 Goldplat announced a dispute with the Rand Refinery over a binding memorandum of understanding entered into with Rand Refinery to process a batch of silver sulphide material (the 'Silver Contract'). Further updates were provided in subsequent operational updates, most recently the Company's interim results announcement of 20 February 2017. Despite the final report from the independent metallurgical expert ('Independent Expert'), who was appointed jointly by both parties, having been completed, the two parties have not been able to reach a settlement. Rand Refinery has subsequently offered a settlement whereby they expect Goldplat Recovery (Pty) Ltd ('GPL') to pay a net amount to them. This proposed settlement is completely unacceptable to Goldplat.
In Goldplat's opinion, the Independent Expert's final report further strengthened the Company's contention that it fulfilled its obligations according to the terms of the Silver Contract, has acted in good faith and taken due care at all times. The Boards of Goldplat and GPL remain of the strong opinion that they should ultimately recover in full the money which is owed to the Company by Rand Refinery, of circa ZAR13.5 million (approximately £780K). Goldplat will be instigating legal proceedings against Rand Refinery.
Goldplat has taken steps to mitigate what has been referred to as "single refiner risk" and would like to re-assure shareholders that regardless of any consequences of a legal dispute, there will be no material effects on the Company's ability to have material processed and metals refined.
Gerard Kisbey-Green, CEO of Goldplat commented: "It is disappointing that after completing a thorough independent investigation into the project, we are still unable to reach agreement with Rand Refinery. We cannot accept a settlement proposal which implies that we owe Rand Refinery anything and will therefore be initiating legal proceedings immediately. We will continue to keep the market informed as to the progress of the dispute over time. In the meantime, the management of Goldplat are focussed on continuing the progress being made in all other aspects of our business, which are performing in line with expectations, and expect to report further progress following the drawdown of the recently secured loan facility."
** 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 (Financial PR) | Tel: +44 (0) 20 7236 1177 |
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
About Goldplat Goldplat plc is an AIM quoted gold producer with two market leading recovery operations in South Africa and Ghana and an operational gold mine in Kenya. The Company produced 37,666oz gold FY 2016, and 21,317oz for H1 FY 2017, with expansion plans underway to further increase production.
The Company's strategy is focussed on utilising cash flow generated from its flagship gold recovery and mining operations to self-fund the sustainable growth and expansion of its niche gold recovery business model. The Company also has a small exploration portfolio in Burkina Faso and Ghana and is evaluating various opportunities to create value or monetise these assets.
