Aim-listed gold producer Goldplat has put its Kilimapesa mine, in Kenya, on care and maintenance while it seeks external funding to further develop the operation.
In the meantime, it continues to engage with stakeholders, including large creditors and employees, as well as with parties that have expressed an interest in investing in the mine.
It has also engaged with the Kenyan Revenue Authority to discuss the payment of Goldplat’s value-added tax claims of more than £1-million.
Although the Kenyan Revenue Authority acknowledged the validity of a material part of the claim no repayments had been received yet, Goldplat said in a statement issued on Friday.
“I believe that putting Kilimapesa on care and maintenance until the required external funding can be raised is best for all stakeholders involved,” CEO Werner Klingenberg added.
The performance of the company’s gold recovery operations in Ghana and South Africa remained strong.
However, with the losses incurred at Kilimapesa and lower activity levels at Gold Recovery Ghana (GRG), Goldplat expects to report a loss from operating activities for the full year. This is likely to be in line with the loss incurred for the interim period ended December 31, 2018.