Canal+ Regulatory News (CAN)

8 Jan 2008 14:52

Central African Gold PLC08 January 2008 Central African Gold Plc / Ticker: CAN / Index: AIM / Sector: Mining & Exploration 8 January 2008 Central African Gold Plc ("CAG" or "the Company") Result of Extraordinary General Meeting ("EGM") Central African Gold Plc, the AIM quoted gold mining and exploration company, ispleased to announce that at the EGM held earlier today, both resolutions wereduly passed with 100% acceptance and accordingly the placing of 60,000,000 newordinary shares of 0.5p each ("Placing Shares") at 26 pence per share (the "Placing") to raise circa £14.85 million net of expenses is now unconditional.The funds raised, together with the additional flexibility provided by therecently secured extension to the Company's existing debt facility, will beutilised to fund the development of CAG's African production and explorationportfolio in Ghana, Mali, Zimbabwe and Botswana. Central African Gold's CEO Greg Hunter said, "With the gold price hitting an alltime high in the New Year and all indicators pointing to the continuing strengthof the gold markets, we find ourselves at an exciting stage of development wherewe hope to capitalise on these positive market conditions. The funds raised willenable us to develop our extensive gold portfolio across Africa and achieve theCompany's objectives of realising an initial annualised gold production targetof 200,000 oz and to build an overall resource base of 7.5 million oz Au by theend of 2008. "At our flagship Bibiani project, exploration and development work has alreadyincreased ore definition at the Bibiani Main Zone by 288% to 2.68 million ouncesAu and our total global mineral resources by 300% to 3.23 million oz Au, as wellas a 391% increase in the underground ore reserve estimate at Bibiani to 1.05million ounces Au. Total gold production for the year ending 31 December 2007 isexpected to be circa 25,000 to 30,000 ounces and we are forecasting productionto reach an annualised rate of 100,000 ounces by the end of 2008. In Zimbabweour focus is on the Dalny Mine and the Golden Quarry/Camperdown complex where weare aiming to significantly increase production and milling capacity as well asprovide an upgrade of underground infrastructure and access to additionalreserves. "In addition, the Medinandi Project in west Mali is proving to be very excitingwith approximately 500,000 ounces of gold resources delineated during 2007. Withthe capital raised, I believe that we can fast track the development of ourprojects to realise the true value of our portfolio and in turn, enhanceshareholder value." The Placing Shares will, on their Admission to trading on AIM, be credited asfully paid and rank pari passu in all respects with the Company's existingissued Ordinary Shares, including the right to receive all dividends and otherdistributions declared, made or paid on the Ordinary Shares after that date. Application has been made to the London Stock Exchange for the Placing Shares tobe admitted to trading on AIM which is expected to take place on 9 January 2008. Following the Placing there will be 166,079,962 Ordinary Shares in issue. * * 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 LtdHugo 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 AssociatesCharmane 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