https://www.miningweekly.com
Africa|Exploration|Financial|Gold|Mining|PROJECT|Projects|Resources
Africa|Exploration|Financial|Gold|Mining|PROJECT|Projects|Resources
africa|exploration|financial|gold|mining|project|projects|resources

Papillon to be readmitted to LSE next month

20th July 2021

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

Investment company Papillon Holdings’ prospectus, which relates to the company’s readmission on the LSE, has been approved by the Financial Conduct Authority (FCA).

The company is expected to be readmitted to the official list of the FCA and to be trading on the LSE by August 23, with a dual listing on the Frankfurt Stock Exchange.

Papillon also raised gross proceeds of about £5.5-million through the issue of placing shares.

Following the readmission, and as part of Papillon’s new corporate strategy to solidify its position as an emerging East Africa-focused gold producer, the company aims to rapidly increase production to about 50 000 oz/y.

Meanwhile, in a separate statement on July 20, Aim-listed Goldplat said the approval of Papillon’s prospectus was a key step towards Papillon's readmission to trading on the LSE and its proposed reverse takeover of Mayflower Gold.

Subsequent to the takeover, 30% of the $15-million consideration for Mayflower will be payable in cash and the remainder through the issue of Papillon shares to Gold Mineral Resources – Goldplat's subsidiary.

Following the readmission, Papillon will also build a Joint Ore Reserves Committee- (Jorc-) compliant resource base upwards of three-million ounces within 12 to 18 months.

Further, the company will advance a well-defined mine optimisation strategy at the Kilimapesa gold mine, where there is significant expansion potential and potential to increase gold production to 25 000 oz/y and the resource to more than two-million ounces.

The company will use its experienced management team to acquire other complementary and strategically located gold mine and development projects in East Africa, Papillon said on July 20.

Further to the Kilumapesa gold mine, specifically, Papillon intends to support future growth including the acquisition of strategic assets, working capital and other general corporate purposes. 

The company will trade under the name of Caracal Gold, with a market cap upon readmission of about £14.5-million.

BACKGROUND
In September 2020, Papillon announced that it had signed a binding heads of agreement to acquire certain contractual production and exploration rights held by Mayflower Capital Investments in gold assets located in Kenya and Congo-Brazzaville.

These rights are held by Mayflower through a special purpose vehicle, Mayflower Gold Investments (MGIL), incorporated by Mayflower in the UK in December 2020. 
 
The company will acquire 100% of the share capital of MGIL and the options that MGIL holds to acquire 100% of the share capital of Kilimapasa Gold Limited, which holds a 100% interest in Kilimapesa and a 70% joint venture interest in Congo Gold, which holds a 100% interest in the Kakamoeka gold project.

Kilimapesa is an established gold mine and gold processing operation that offers immediate value to Papillon. Kilimapesa is located in Kenya about 230 km west of Nairobi in the historically productive Migori Archaean Greenstone Belt.

Contemporaneously with readmission, the company will exercise its newly acquired option to acquire a 100% interest in Kilimapesa and, immediately thereafter, the company intends to devote substantially all of its resources to the exploration and development of gold in Kilimapesa.

Kakamoeka, which includes four exploration licences covering over 3 000 km2 of the Mayombe Greenstone Belt, in Congo-Brazzaville, provides the company with further gold exploration and development opportunities. 

In January, the parties amended their heads of agreement and in March this year, the company and Mayflower supplemented their heads of agreement with a formal purchase agreement.
 
Papillon’s directors believe that securing a near-term gold asset with significant upside from resource expansion and mine optimisation activities represents a significant opportunity for Papillon’s stakeholders to gain exposure to the junior gold mining industry.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Resources Watch
Resources Watch
27th March 2024

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.127 0.162s - 91pq - 2rq
Subscribe Now