LONDON: Papillon Holdings plc has signed a binding Heads of Agreement with Mayflower Capital Investments Pty Limited to acquire certain contractual production and exploration rights held by Mayflower in two gold assets located in Kenya and Congo Brazzaville.
The acquisitions are expected to provide Papillon Holdings with near term gold production and considerable value upside potential from resource expansion and mine optimisation at Kilimapesa, in addition to uplift through the delivery of exploration and development milestones at Kakamoeka.
The acquisitions are intended to be the first phase of a strategy to establish a strategic portfolio of African gold producing assets focussing on known and geologically proven gold projects.
Papillon CEO Charles Tatnall said, “Securing a near-term gold asset, which requires limited capex to bring to fruition, and which is partnered with significant upside from resource expansion and mine optimisation activities, is a remarkable find for our investors. When coupled with an additional highly prospective and potentially equally valuable suite of gold discoveries in Congo Brazzaville, I believe we have a truly exceptional and largely de-risked opportunity for shareholders to gain exposure to the junior gold mining industry.
“As investors will know, now is perhaps the perfect time to be developing gold mines and projects. The gold price recently hit all times highs and despite a perceived correction in recent weeks, many commentators remain bullish about a long-term and sustainable gold price holding above US$2,000/oz.”
Mayflower is a global natural resources investment group. It originates, structures and provides principal investment and management services in order to sufficiently de-risk investments and pave the way for other investors. With offices in Perth, Johannesburg and London, Mayflower has a truly global reach to good quality natural resources assets.
Under the Agreement, Papillon has agreed to acquire the contractual rights from Mayflower to acquire a 100% interest in Kilimapesa Gold Pty Limited (KPG). KPG is a Kenyan incorporated company which holds a 100% interest in Kilimapesa and the associated mining and exploration licences.
Mayflower’s technical management team is currently on site at Kilimapesa overseeing and implementing plans for the immediate recommencement of gold production using the established processing plant. Further mine and process plant optimisation studies are underway and are to be implemented upon completion of the Acquisitions to further increase annual gold production to an initial rate of 25,000 oz.
The Company has further agreed to acquire the contractual rights from Mayflower to acquire a 70% interest in Congo Gold SARL (CGS). CGS is a company incorporated in Congo-Brazzaville which holds a 100% interest in Kakamoeka which includes four exclusive exploration permits that cover over 3,000km2 and extend over 50km of strike length of the Mayombe Greenstone Gold belt from the Angolan border in the south-east to the Gabon border in the north-east.
Going forward, the Company’s strategy is to establish a strategic portfolio of gold producing and development assets focussing on existing gold resources and assets in proven and well-established gold mining regions in Africa. The Company is actively working with Mayflower in the identification and further potential acquisition of gold projects which meet these criteria.
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