Papillon Holdings PLC Acquisition and Transaction Update (9351P)
February 23 2021 - 2:00AM
UK Regulatory
TIDMPPHP
RNS Number : 9351P
Papillon Holdings PLC
23 February 2021
Papillon Holdings plc / Index: LSE / Epic: PPHP / Sector:
Investment
23 February 2021
Papillon Holdings Plc ('Papillon' or the 'Company')
Acquisition of the Kilimapesa Gold Mine - Transaction Update
Papillon Holdings plc, the London listed investment company, is
pleased to provide an update relating to the Company's agreement
with Mayflower Capital Investments Pty Limited ('Mayflower') on the
purchase of the Kilimapesa Gold Mine in Kenya ('Kilimapesa' or the
'Mine') (the 'Transaction'). The completion of the Transaction is a
key component of the Company's planned re-admission to the Official
List by way of a Reverse Take Over and to trading on the Standard
Segment of the Main Market of the London Stock Exchange and
contemporaneous dual listing on the Frankfurt Stock Exchange.
Further to the announcement of 18 February 2021, the Company is
pleased to report that formal legal documentation relating to the
acquisition of the total issued share capital of Kilamapesa Gold
(Pty) by Mayflower has been signed by all parties. The formal
documentation includes a Share Purchase Agreement ('SPA') entered
into by Mayflower Gold Investments Limited ('Mayflower Gold' a
wholly owned subsidiary of Mayflower), Mayflower, and Gold Mineral
Resources Limited (a wholly owned subsidiary of AIM-listed Goldplat
plc). The SPA sets out the terms of the Transaction under which
Mayflower Gold will acquire 100% of the entire issued share capital
of Kilimapesa which holds the licences and assets that form the
producing Kilimapesa Gold Mine and Processing Operations located in
Narok County, Kenya.
A deed of novation and royalty agreement has also been entered
into by Mayflower Gold and Gold Mineral Resources Limited.
Completion of the Transaction remains subject to a number of
conditions being satisfied including, amongst other things, receipt
of various regulatory approvals in Kenya and the completion by
Mayflower Gold of the Reverse Take Over of Papillon Holdings
plc.
The signing of these agreements between Mayflower and Goldplat
plc's subsidiary, Gold Mineral Resources Limited is satisfaction of
a key condition for Mayflower to acquire Kilimapesa and key
conditions to the Company's agreement with Mayflower.
Papillon's executive director Charles Tatnall comments:
"Activities in Kenya, London and Europe are now accelerating ahead
of the anticipated debut on the London Stock Exchange and Frankfurt
Stock Exchange and in conjunction with our acquisition of
Kilimapesa, a producing gold mine in Kenya. This will represent the
first phase our strategy to become an established and profitable
gold production company with multiple gold mining operations
located in East Africa producing in excess of 50,000oz per annum
and with JORC Compliant reserves and resources of +2Moz. I look
forward to reporting further news relating to the Transaction and
the progress of our Prospectus, which was submitted to the FCA last
week."
Further Information
Kilimapesa Gold Mine
Kilimapesa is an established, permitted and operating gold mine
with current gold sales and successive gold pours in 2021.
Operations recommenced in 2020 after a period of 18 months on care
and maintenance following the remedy of several historic issues and
the plant is now operating at record levels of two and a half to
three times previous levels. Additionally, underground mine
operations have commenced which have resulted in higher grade ore
now feeding the plant. Upon completion of the Transaction and the
RTO, Caracal Gold plc will hold an 100% interest in the producing
Kilimapesa Gold Mine in Kenya which currently has a 671,446oz JORC
Compliant resource and a well-defined mining optimisation strategy
in process.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310 ("MAR"). With the publication of this
announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
** ENDS **
For further information visit www.papillonholdings.com or
contact the following:
Papillon Holdings plc info@papillonholdingsplc.com
Charles Tatnall / James Longley
Mayflower Capital Investments info@mayflowercapinvest.com
Pty Limited
Gerard Kisbey-Green / Jason
Brewer
-----------------------------
Novum Securities Ltd (Broker) crowbury@novumsecurities.com
Colin Rowbury
-----------------------------
St Brides Partners Ltd (Financial info@stbridespartners.co.uk
PR)
Isabel de Salis / Charlotte
Hollinshead /
Cosima Akerman
-----------------------------
DGWA, the German Institute for info@dgwa.org
Asset and
Equity Allocation and Valuation
(European Investor and Corporate
Relations Advisor)
Stefan Müller / Katharina
Löckinger
-----------------------------
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