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Central Rand Gold Hit By Loan Delay Due To "Exchange Restrictions"

Thu, 20th Apr 2017 12:02

LONDON (Alliance News) - Central Rand Gold Ltd on Thursday said it the second tranche of the loan secured from Jia Bang Wang has been delayed, and said it is continuing to install centrifugal concentrators for its operations in South Africa.

The miner first announced the USD1.0 million loan agreement with the individual in early 2017, and recently confirmed that it received the first tranche of USD500,000. However, on Thursday the miner said the second tranche of USD500,000 has been delayed due to "certain exchange restrictions".

"However, efforts are being made to expedite the transfer process. The directors continue to monitor the company's cash position," Central Rand said.

Jia Bang Wang, who holds a 9.5% stake in the company, is the largest shareholder in Central Rand.

In March, after Central Rand had secured the first tranche of the loan, the miner undertook a heavily discounted placing to raise GBP300,000 for working capital, dishing out warrants to share subscribers in the process.

Cashflow has been hit in 2017 by production down-times and one-off costs following excessive rainfall in the first two months of the year, causing difficulties with the run-of-mine material and leading to power outages. Tolling companies had also reduced the amount of material being sent for Central Rand to process, further impacting the miner's operations.

Central Rand also said on Thursday that it is continuing to install the centrifugal concentrators and said commissioning should still occur in the third quarter of 2017. Equipment that was previously ordered from China has now been manufactured and should arrive on site in the middle of June.

"The open pit mining which started at the beginning of last month, is continuing, and materials have been delivered to the plant for crushing, prior to processing. Third party batch toll treatment materials are also being fed to the plant," said Central Rand.

Central Rand shares were down 5.4% on Thursday at 0.577 pence.

By Joshua Warner;; @JoshAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

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