UK’s gold mining firm Goldplat has put off the sale of its gold mine in Narok County to the end of February.

Goldplat had initially expected to complete the sale of the Kilimapesa Goldmine to Mayflower Capital Investments Pty Ltd in October, but this was extended to December.

This, however, did not happen, and the firm, in a January 4 statement, said the transaction would now be concluded by February 28.

The miner, which is listed at the Alternative Investments Market (AIM) at the London Stock Exchange (LSE), started the search for a buyer for the gold mine in 2018.

But it is only last year that it signed an agreement with Mayflower for a complex transaction that will see the latter sell to Paillon Holdings.

Goldplat will also continue earning royalties from the sale of gold mined at Kilimapesa.

“As announced on October 1, 2020, the term sheet was extended to December 31, 2020 based on certain conditions. The parties have now agreed to extend the term sheet and exclusivity period again from December 31, 2020 to February 28, 2021,” said the firm in an update to shareholders.

“The value of the consideration shares to be issued has been increased from $1.5 million (Sh150 million) to $1.75 million (Sh175 million), and an option that can be exercised by Mayflower has been included for consideration to be paid in cash of $1.5 million (Sh150 million) rather than shares.”

The buyers are also expected to raise a minimum $4 million (Sh436 million) of funding for the development of Kilimapesa’s operations. Goldpat said since July when the two companies signed the initial terms, Mayflower had supported Kilimapesa with a subordinated loan of $400,000 (Sh44 million).