Canal+ Regulatory News (CAN)

31 Jan 2007 11:30

Central African Gold PLC31 January 2007 Central African Gold Plc / Ticker: CAN / Index: AIM / Sector: Mining & Exploration 31st January 2007 Central African Gold Plc ("CAG" or "the Company") Arranges US$15 million debt facility through Investec to fast-track Bibiani development Central African Gold Plc, the AIM traded gold mining and exploration company,through its Ghanaian subsidiary, Central African Gold Ghana Limited, hasconcluded a debt facility with Investec Bank Limited in South Africa of US$15million (subject to the satisfaction and finalisation of certain terms andstandard conditions and security registrations). This additional financing willenable the Group to optimise the development of the producing Bibiani Gold Mineand associated prospecting licences situated in the Sefwi-Bibiani GreenstoneBelt in Ghana. The facility is for 30 months, with repayments commencing nine months after thefirst draw down and is repayable in nine equal capital instalments inclusive ofinterest. The facility bears interest at a rate of three month LIBOR (currently5.36%) plus 2.5%. There is the option to roll over the facility for a future sixmonths subject to an increase in proven reserves. A 60,000 oz hedge based on theforward curve of the spot gold will be put in place over the tenure of thefacility, this representing approximately 30% of estimated production duringthis tenure. Commenting on the approval, CEO Greg Hunter said, "this facility will assist inoptimising both our current and future capital structure as well as providing uswith the foundation for developing a meaningful relationship with a financialinstitution that will assist with the growth of the group in the future. We wantto become a leading mid-tier operating gold company, with an initial target ofcirca 200,000 ounces of annualised low-cost gold production and 7.5 millionounces of resource by the end of 2008 and we believe this facility andrelationship with Investec will help us to achieve this." * * ENDS * * For further information please contact or visit www.centralafricangold.com orcontact: Greg Hunter Central African Gold Plc Tel: +27 (0)82 882 4222 Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0)20 7242 4477 Simon Raggett Strand Partners Limited Tel: +44 (0)20 7409 3494 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 and Botswana. It hasa highly experienced management team, which has worked together for four yearsmanaging six underground greenstone gold mining operations and buildingexploration portfolios. CAG's portfolio includes the producing Bibiani gold mine and prospectinglicences in Ghana, which it acquired from AngloGold Ashanti Ltd, two jointventures in Mali covering 23 prospective permits and licences in Botswanacovering the extension of the Kraaipan greenstone belt from South Africa. Thedirectors are evaluating additional prospects in Africa to establish CAG as aleading 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