London-based Goldplat Plc is ready to sell its Migori gold mine as its bid to raise new funds to run the loss-making operation drags on.
The multinational said in latest trading update the mining operation of its local subsidiary Kilimapesa Gold (KPG) remains on care and maintenance in the absence of an investment partner to inject in funds.
“We remain committed to our strategy of increasing long-term visibility of earnings in the recovery businesses through key initiatives and finding an investment partner or buyer for Kilimapesa,” the firm said in its trading update for six months to December 2019.
The company added that it continues to hold discussions with funding partners to recapitalise “this valuable asset”.
Placing a mine under care and maintenance means that production stops and only a few employees are needed to make sure the site remains in safe and stable condition.
This is usually necessary to ensure that future production can resume quickly and more efficiently.
Goldplat said only the processing of artisanal tailings continues and that operating losses are lower than it would have been had it continued with full care and maintenance.
The firm reported that operating losses at KPG more than halved to Sh38.8 million (£295,000) in six months to December 2019, down from Sh90.5 million (£686,845) a year earlier.
During the six months, the Kenya Revenue Authority gave the firm Sh68.8 million (£523,000) in VAT refunds.
Goldplat’s permits and licenses have not been affected by the decision to halt underground mining.