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African gold producer Goldplat has announced the sale of its Kenyan Kilimapesa mine to Mayflower Capital Investments.
Mayflower has agreed to issue shares to the value of $1.5 million (£1.08 million) for the deal.
Separately, Mayflower has agreed to assign its rights and obligations under the term sheet to Papillon Holdings to raise a further $4 million in funding to develop operations at the Kilimapesa mine.
Werner Klingenberg, chief executive officer of Goldplat, said both parties have been encouraged by the steady progress made, although this has been slower than originally expected. He attributed the delays to circumstances outside both parties control.
Goldplat remains confident in Mayflowers ability to complete the transaction, Werner added.
We continue to receive the benefit of the Mayflower management team at Kilimapesa.
At 1:23pm: (LON:GDP) Goldplat PLC share price was 0p at 7.8p