African gold producer Goldplat is borrowing $2 million (Sh200 million) to finance the expansion of its Kilimapesa gold processing plant in Lolgorian, Trans Mara West.
The London-listed firm has entered into a loan agreement with global investment management firm Scipion Capital to ramp up production at the plant.
The loan will mature after one year and is pledged against the company’s proceeds from gold sales from its subsidiaries and some of its bank accounts, among other assets.
Apart from financing the second phase of construction of the plant, the loan will also help to recapitalise Goldplat’s subsidiaries in South Africa, Botswana and Namibia. Goldplat CEO Gerard Kisbey-Green said that the debt will realign the company’s capital structure and avail necessary working capital for its recovery businesses.
‘We stated in our interim results announced on February 20, 2017, that we are looking at various forms of debt capital raising with a view to restructure the group’s balance sheet and I’m very pleased to have agreed this loan facility with Scipion,” he said.