Gold recovery specialist Goldplat plc (LON:GDP) is placing its Kilimapesa mine in south-west Kenya on care and maintenance until external funding for the operation can be secured.
In an update, the company said a number creditors of the Kilimapesa business are showing patience, while it is still waiting for the local tax authorities to sanction a VAT repayment in excess of £1mln.
“I believe that putting Kilimapesa on care and maintenance, until the required external funding can be raised, is best for all stakeholders involved,” said Goldplat chief executive Werner Klingenberg.
“We will be focusing on expanding our profitable recovery operations whilst maintaining our commitment to secure the relevant external funding for the KPG.”
The performances of the gold recovery operations, based in South Africa and Ghana, are described as “strong”. The company has guided that it expects to post a loss for the full-year in line with the shortfall seen at the halfway stage, reflecting the problems at Kilimapesa and the “current activity levels” in Ghana.