Mayflower Gold has completed the acquisition of the Kilimapesa gold Mining and processing operations in Kenya from AIM-listed Goldplat.
The acquisition has been brought forward ahead of completion of the planned reverse takeover (RTO) of Papillon Holdings by Mayflower which will create a new London Stock Exchange listed gold producer in East Africa called Caracal Gold.
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 continues to operate and gold sales are continuing under existing gold refining agreements in Europe.
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 will hold a 100% interest in the mine, which currently has a 671 446 oz JORC Compliant resource and a well-defined mining optimisation strategy in process.
More funding for expansion of operations
Significantly, the acquisition allows Mayflower to proceed with planned capital investment activities and operational changes at Kilimapesa ahead of completing the RTO that will further benefit Papillon shareholders through accelerated development and production timelines.
Papillon’s executive director Charles Tatnall commented, “We are delighted with the excellent progress made including the accelerated acquisition of Kilimapesa, which significantly de-risks the transaction for our shareholders. The focus for all parties is now on investment activities and operational changes on site at Kilimapesa given the accelerated development and production timelines.”