Canal+ Regulatory News (CAN)

14 Jan 2009 07:00



Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining

14th January 2009

Central African Gold Plc ("CAG" or "the Company")

Statement regarding event of default

Central African Gold Ghana Limited ("CAG Ghana"), a 100 per cent. owned subsidiary of CAG, the AIM traded gold mining and exploration company, today announces that it has received a notice of default (the "Notice of Default") from Investec Bank Limited ("Investec Bank") regarding the non-payment of monies due on the Investec Bank project loan facility agreement (the "PLFA") and the non-payment of monies due under various gold forward transaction agreements (the "HFA") with Investec Bank. 

The Notice of Default requires that CAG Ghana repay the full amounts outstanding under the PLFA, which total US$20,924,763.91, and the monies due, if any, under the HFA. 

Whilst Investec Bank may seek repayment of all the outstanding monies from CAG, it is the Board's view that it is liable for no more than US$5.0 million (plus any capitalised interest which may be due to be paid) to Investec Bank under the PLFA and the HFA. 

As security for the monies advanced under the PLFA, the Company created a charge over the 90,000 shares in CAG Ghana in favour of Investec Bank (the "Charge"). CAG Ghana owns the Company's main gold producing asset, the Bibiani mine ("Bibiani").  The Company has today received notice from Investec Bank that it has invoked its power of attorney under the Charge and has transferred the 90,000 shares in CAG Ghana to Investec Bank and as a result Investec Bank is now the legal owner of Bibiani. 

The Board is consulting with its legal and financial advisers and a further announcement will be made in due course.

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For further information please visit www.centralafricangold.com or contact: