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BEE partner raises stake in Goldplat subsidiary

24th April 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Black economic-empowerment (BEE) company Amabubesi Property will acquire an additional 11% stake in Aim-listed Goldplat’s South African gold recovery subsidiary Goldplat Recovery for R29.5-million.

The BEE company already held a 15% stake in Goldplat Recovery, but would increase its shareholding to 26% in line with South African BEE legislation. The 26% BEE target has to be met before May 1, 2014.

In terms of a memorandum of agreement (MoA) signed by the parties, Amabubesi would make a 10% upfront cash payment on completion of the acquisition.

The remaining 90% would be vendor financed by Goldplat Recovery, with Amabubesi repaying the loan using its pro rata dividends.

The transaction valued Goldplat Recovery at R268.2-million, Goldplat stated.

“We are delighted to have signed this binding MoA with our BEE partners, ensuring that our South African gold recovery operation is 100% BEE-compliant well in advance of the May 1, 2014 deadline. 

“Amabubesi has been a very supportive shareholder since its initial acquisition in 2008 and we look forward to continuing this relationship into the future,” commented Goldplat CEO Russell Lamming.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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