London-listed investment company Papillon Holdings has successfully recommenced gold production at the Kilimapesa gold project in Kenya.
Read more: Papillon secures gold opportunities
As a part of due diligence and testing the state of operations, Kilimapesa successfully recommenced gold production with the first smelt taking place on Monday 14 September 2020 yielding a 87 oz gold bar, and with the intention to continue gold production at the mine.
This forms part of the work being undertaken to complete the transaction with Mayflower Capital Investments, which will see the Papillon acquire some or all of the interests of two gold assets currently held by Mayflower located in Kenya and Congo Brazzaville and be renamed Gold Mines of Africa on re-admission. Good progress is being made towards completing the transaction, amongst other things, Mayflower has confirmed that the technical and legal due diligence have been completed on these assets, with positive outcomes.
Additionally, an updated Competent Person Report (CPR) has been successfully completed and will be released as a part of re-admission documentation. Dr. Cedric Simonet from Akili Mineral Services is acting as Competent Person.
Background to the transaction
Mayflower has entered into an agreement with Goldplat to acquire the Kilimapesa gold mining and processing operations, which is an established gold mine with an existing 671 446 oz JORC resource and further resource expansion and mine optimisation potential.
Mayflower has further entered into an agreement with Papillon Holdings that will see it complete a reverse takeover and resume trading on the London Stock Exchange under the name Gold Mines of Africa.
Kilimapesa at a glance
Kilimapesa is an established gold mine with an existing 671 446 oz JORC resource and further resource expansion and mine optimisation potential.
Production commenced at Kilimapesa in 2012 with the mine having an established infrastructure including a processing plant commissioned in 2016 with design capacity of 200 tonnes per day; it was put on care and maintenance in 2019, primarily due to insufficient funding.
Additional mine and process plant optimisation studies are underway and are to be implemented upon completion of the transaction to achieve annual gold production to current design capacity of 5 000 oz, increasing to 10 000 oz and to a run rate of 25 000 oz scheduled for Q2, 2022.