Kennedy Senelwa
1 July 2009
Nairobi — Swedish mining firm International Gold Exploration (IGE) is selling 50 per cent of its mining interest in Kenya for $2.7 million (Sh208 million) to Goldplat PLC.
The UK-incorporated Goldplat said its wholly owned subsidiary Gold Mineral Resources Ltd has signed an agreement with IGE to purchase the interest in Kilimapesa Gold (Pty) Ltd that owns a gold mine near Kiligoris town.
Goldplat chief executive officer, Demetri Manolis , said $1.2 million is payable on conclusion of the agreement and the balance in six monthly amounts of $250,000.
"The parties have agreed to conclude the sale agreement. Kilimapesa Gold commenced in January 2009 initial production in the 213 square kilometres of Lolgorien licence area," he said in an interview.
The two firms entered into a joint venture agreement in June 2007. Goldplat was to earn 50 per cent interest by advancing U$400,000 to be used for development of the gold mine.
Mr Manolis said the joint agreement will be cancelled on conclusion of the sale agreement leading to Goldplat owning 100 per of Kilimapesa whose plant can produce about 100 kilogrammes of gold per annum.
"Kilimapesa has been an important production experience for us. In the current development phase of IGE Group we consider the sale of our part to be the best decision for operations going forward," said IGE Chief Executive Officer, Tomas Fellbom.
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