Goldplat - Completion of purchase of Banka Mining Licence - Ghana

Goldplat plc, the AIM quoted gold producer focused in Africa, announces that its wholly owned subsidiary company Banka Gold (Ghana) Limited completed the purchase of the Banka Mining Lease from Gulf Coast Resources Ghana Limited.  The Banka Mining Lease (‘Banka') is a ten year renewable mining lease for gold and associated minerals, granted by the Government of Ghana, over an area of c.29 sq km located in the Amansie East and Asante Akim South Districts of the prospective Ashanti Region of the Republic of Ghana.  

Banka is held subject to a 10% carried interest owned by the Government of Ghana, and Gulf Coast Resources Inc, the parent company of the vendor, is entitled to receive a net smelter royalty of 1.5% of gold sold.  The consideration for the purchase, which has been settled out of existing cash resources of Goldplat, was USD 1.6 million.

On 23 November 2010 Goldplat announced that it had signed a Memorandum of Agreement to acquire Gulf Coast Resources Ghana Limited, the holder of the Banka Mining Lease, subject, inter alia, to the completion of satisfactory due diligence.  Following completion of such due diligence it was agreed that Goldplat would acquire the Banka Mining Lease itself.  Goldplat is now finalising its proposals for further exploration and development of the Banka Mining Lease.  An announcement of these proposals, together with a summary of the results of the technical due diligence, will be made in due course.

Goldplat CEO Demetri Manolis said, "We are delighted to have finalised this acquisition as we believe Banka represents a substantial gold prospect in the Ashanti Region of Ghana, a prime district for gold project development.  Work completed to date indicates the prospectivity of the licence area and we plan to establish a JORC compliant resource, and ultimately commence a significant mining operation.  Banka, along with the Company's solid portfolio of gold projects in Burkina Faso, Kenya, South Africa and Ghana underlines Goldplat's continued commitment to building its position as a highly profitable mid-tier gold company in Africa."