Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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0.1p seems unlikely but certainly should be scope for a dividend of some sort assuming the second half of the year is similar to the first 6 months. Looks like that is about the only thing that is likely to significantly move the SP. Once the restructuring is done, reduced tax liabilities should also free up some cash for a dividend.
Yes would be a real boost to the share price and a great incentive to invest in GDP?
From company comments it seems a dividend is under consideration. Here is a suggestion. The latest half year figures suggest annual profit before tax could hit £6m. Suppose tax at 25% and there is £4.5m available for dividend. The company could set a sustainable dividend at £1.7m. Given there are approx 170m shares in issue, this would mean a dividend of £0.01 per share. This is a dividend yield of approx 14%. It leaves £2.8m retained. What a boost this would also give to the share price as well. It would be good if management would reveal their this issue.
* we should hold 30% across GDP and Mayflower prior to the placing, the Board hold another 30%
https://static1.squarespace.com/static/5f4faf276217c27eb3470ca9/t/6033c8eab139980fcf1bfdf4/1614006509877/Caracal+Gold+February+2021.pdf
It's not clear at this stage but the key points are
- It looks almost certainly like GDP's holding company GMR will receive shares at a discounted price in Mayflower
- Mayflower will 'reverse-list' (into Caracal) and seek to raise $4m from the market to further develop Kilimapesa
- The capital raise will likely be at a premium to the value both GDP and Mayflower have already invested, which is at least $450k since the revival plan was enacted (between the two companies)
- As the project is already producing and ramping up with 200 employees as of last month I believe Caracal will list with a market value of around £6-8 million and we should hold a 40-50% stake prior to the placing.
- With a capital raise of roughly $4 million (roughly £3 mil) Caracal Gold will probably be valued at £10m and our holding via Mayflower diluted to 30-35%
- The reason this works so well for GDP holders is Caracal Gold's intention to place shares (possibly with PrimaryBid) upon listing and this will be at a premium to what GMR agreed should be the subscription price for the $1.5m worth of Mayflower shares.
https://www.miningweekly.com/article/london-listing-on-way-as-mining-company-strives-to-become-green-gold-producer-in-kenya-2021-02-15/rep_id:3650
Thanks if Goldplat own one third of an operational mine on top of everything else then the company have made a great deal.
What % of the company buying the Kili mine will GP own if payment goes through in shares?
Cap raise is “minimum” $4mn”, so £3m or so. Means £1.5m of total “minimum” of £4.5m = 33% maximum. I think. (Messed up a bit by current USD collapse vs GBP.)
If goldplat receive payment in shares what % of the company owning Kilimepesa will they own?
Does the cap raise for the listing depend on the “various regulatory approvals in Kenya” and a “prospecting licence”? I am no expert in Kenyan government mining officialdom but these sound like no small matters.
Goldplat 7.55p £12.8m (GDP.L)
The Gold producer, with international gold recovery operations located in South Africa and Ghana provided an update relating to the sale of the Kilimapesa Gold Mine in Kenya.
Formal legal documentation relating to the acquisition of total issued share capital of Kilimapesa by Mayflower Gold Investments Limited a wholly owned subsidiary of Mayflower Capital Investments Pty Limited has been signed by all parties. The formal documentation includes a Share Purchase Agreement entered into by Gold Mineral Resources Limited (GMR, a wholly owned subsidiary of Goldplat) with Mayflower Gold. 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. The completion date for the Transaction has been changed from 28 February 2021 to 31 March 2021.
A deed of novation and royalty agreement has also been entered into by GMR and Mayflower Gold. The royalty agreement, GMR has the right to receive a 1% gross net smelter return royalty subject to a maximum of US$1,500,000 on future gold produced and sold by Kilimapesa.
This is good news but the delays and use of management time is a tad frustrating. Everything moves a bit slowly with GDP but the bottom line is looking good.
https://www.londonstockexchange.com/news-article/GDP/update-on-sale-of-kilimapesa/14874412
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to report that all legal documentation has been signed and that progress are being made on the number of conditions to be satisfied."
bugger Werner - I presume he is talking about B Empowerment situation? I did wonder about that?
Strange, looks like LSE deleted the post I made. Are we not allowed to copy RNS details across or Twitter links?
Here are the highlights
Papillon Holdings Plc - Transaction Update, Prospectus Submitted to FCA & Name Change
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') in addition to other corporate developments.
· Prospectus submitted to the FCA relating to the application for re-admission of the Company's ordinary shares 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 (the 'RTO');
· Name change to Caracal Gold plc ('Caracal') to become effective on successful completion of the Transaction and RTO;
· Contemporaneous dual listing on the Frankfurt Stock Exchange and appointment of Deutsche Gesellschaft für Wertpapieranalyse GmbH ('DGWA'), a mining and resource focused European investment banking boutique, as European Lead Manager during the RTO process;
· Appointment of London-based Novum Securities as broker, bookrunner and placing agent to the Company in regards to the RTO and Transaction with immediate effect;
· Significant progress regarding approvals and due diligence for completion of the Transaction with Mayflower and between Mayflower and Goldplat plc;
· Approval processes for the acquisition of the Kilimapesa Gold Mine are also progressing well in Kenya, and;
· Strategy continues to advance as the Company seeks 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.
Papillon's executive director Charles Tatnall comments: "We are excited to commence our journey as a London listed gold producing company, with a clear strategy to optimise operations and expand mineable resources at the operating Kilimapesa Gold Mine. I am pleased to report that the Mayflower team has achieved several gold pours at Kilimapesa in late 2020 and already in 2021, and we have an exceptional opportunity to materially enhance the Mine's production profile in the near term."
https://twitter.com/CaracalGoldplc
Caracal Gold will be a new London listed gold company producing from the Kilimapesa Gold Mining and Processing Operations in Kenya.
- Established mine and processing plant
- Gold producer
- +671,000oz at 2.4g/t JORC resource
- Exploration target +2Moz
https://www.londonstockexchange.com/news-article/GDP/update-on-sale-of-kilimapesa/14869790
Werner Klingenberg, CEO of Goldplat commented: "I am pleased to see the progress made by Papillon for its re-admission to the Main Market, as well as the transaction on all fronts".
PPHP RNS reads promisingly. A few more days.
According to Keyan news Kili will list on LSE .
Kenyan source looks positive for KILI to list on LSE. Ref ADVFN
ref. GDP share chat on ADVFN Looks positive for LSE listing Kenya source.
Any idea what happens if funds not achieved other than sale falls through?
https://static1.squarespace.com/static/5f4faf276217c27eb3470ca9/t/5fc62c70fa04221c71f299d2/1606823039431/Mayflower+Gold+December+2020-compressed.pdf
Books open on fundraising 1 February 2021
Books Close on fundraising 21 February 2021
General meeting to approval Transaction 21 February 2021
Complete acquisition of Kilimapesa Gold 28 February 2021
Admission to Trading 28 February 202
propping us up again I see 100,000 Buy this morning in a very quiet market?
no problem. So try again guys.