Goldplat puts operations at Kilimapesa on care and maintenance

AIM-listed gold producer Goldplat has put operations at its Kilimapesa project in Kenya on care and maintenance until external funding can be raised.

Goldplat told investors on Friday that it was continuing to engage with stakeholders of the project, including large creditors and employees, whilst seeking funding required to develop operations.

The group said it had received "substantial support" from a number of the engaged stakeholders, all of which had committed to not demand payment from Kilimapesa in the next six months.

Goldplat noted that it had touched base with the Kenyan Revenue Authority in order to discuss payment of the outfit's value added tax claims, with a cumulative value in excess of a £1m.

The group also said Goldplat Recovery's performance remained "strong", but with losses at Kilimapesa and the current activity levels at Gold Recovery Ghana, Goldplat anticipates a loss from operating activities for the full year.

Chief executive Werner Klingenberg said: "I believe that putting Kilimapesa on care and maintenance, until the required external funding can be raised, is best for all stakeholders involved.

"We will be focussing on expanding our profitable recovery operations whilst maintaining our commitment to secure the relevant external funding for the KPG."

As of 0930 BST, Goldplat shares had slumped 5% to 2.28p.