Canal+ Regulatory News (CAN)

30 Nov 2007 11:28

Central African Gold PLC30 November 2007 Central African Gold Plc / Ticker: CAN / Index: AIM / Sector: Mining & Exploration 30 November 2007 Central African Gold Plc ("CAG" or "the Company") Secures US$10 million extension to existing debt facility Central African Gold Plc, the AIM quoted gold mining and exploration company,through its Ghanaian subsidiary, Central African Gold Ghana Limited, hasconcluded a US$10 million extension to its existing US$15 million debt facilitywith Investec Bank Limited ("Investec") in South Africa (subject to thesatisfaction and finalisation of certain terms and standard conditions precedentand security registrations). The additional flexibility provided by theextension to the existing debt facility, will enable the Company to progress itsplanned corporate strategy to establish itself as a leading mid-tier operatinggold company, with an initial target of 200,000 ounces of annualised low-costgold production and 7.5 million ounces of resource by the end of 2008. The total facility is now a five year facility from 1 June 2007, with equalquarterly capital repayments commencing on 1 March 2008 and is repayable inequal capital instalments inclusive of interest. The facility bears interest ata rate of three month LIBOR (currently 5.12 per cent.) plus 2.5 per cent.Additionally, CAG has agreed to issue Investec 750,000 warrants over ordinaryshares of 0.5p each in the Company exercisable at 5.0p per share anytime upuntil 31 March 2011. A 60,000 ounce hedge based on the forward curve of thespot gold has been put in place over the tenure of the facility. This currentlyrepresents around 6 per cent. of Bibiani's proven and probable reserves. CEO Greg Hunter said, "The additional flexibility provided by the extension tothe existing debt facility will allow us to push ahead with maximisingproduction at Bibiani which is now well on track. We mined 23,000 tonnes inNovember at grades of between 2.5-3.0g/t Au, above our internal forecasts, andare expecting to expand on this tonnage significantly in December at anticipatedgrades of around 3.0g/t Au inline with current mining plan. This momentum webelieve will be carried on into 2008, allowing us to achieve our statedobjective of producing just in excess of 100,000 ounces on an annualised basisfrom Bibiani." * * ENDS * * For further information please visit www.centralafricangold.com or contact: Central African Gold PlcGreg Hunter/Nicole Broome Tel: +27 (0) 11 676 2500 In London:St Brides Media & Finance Ltd Hugo de Salis/Felicity Edwards Tel: +44 (0) 20 7242 4477 Strand Partners LimitedSimon Raggett /Braden Saunders Tel: +44 (0) 20 7409 3494 RBC Capital MarketsMartin Eales/Andrew Smith Tel: +44 (0) 20 7029 7881 In South Africa:Russell and Associates Charmane Russell Tel: + 27 (0) 11 880 3924 Notes to Editors: Central African Gold Plc, admitted to AIM in April 2004, was established toacquire gold assets with a geographical focus on Africa. The Company hasestablished a sound portfolio with projects in Ghana, Mali, Zimbabwe andBotswana. It has a highly experienced management team, which has worked togetherfor four years managing six underground greenstone gold mining operations andbuilding exploration portfolios. CAG's portfolio includes the producing Bibiani gold mine and prospectinglicences in Ghana, which it acquired from AngloGold Ashanti Limited, three jointventures in Mali covering 22 prospective permits and a licence in Botswanacovering the extension of the Kraaipan greenstone belt from South Africa. CAGrecently acquired five mines and extensive exploration properties in Zimbabwe.The management team is evaluating additional prospects in Africa to establishCAG as a leading mid-tier African gold producer with world class exploration andproduction assets. This information is provided by RNS The company news service from the London Stock Exchange