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16 Feb 2009 10:02
Central Rand Gold Limited ('CRG' or 'the Company')
(Incorporated as a company with limited liability under the laws of Guernsey, Company Number 45108)
(Incorporated as an external company with limited liability under the laws of South Africa, registration number 2007/0192231/10)
ISIN: GG00B24HM601
Share code on LSE: CRND
Share code on JSE: CRD
BEE Developments
From the time of CRG's flotation in November 2007, CRG has fulfilled the requirements for full Broad-Based Black Economic Empowerment ("BBBEE") under the South African Mineral and Petroleum Resources Development Act, 2002 ("MPRDA") and the South African Mining Charter, ahead of the 5 year timetable envisaged for full compliance, with Puno Gold Investment (Pty) Ltd ("Puno") acting as the BEE partner.
Under the arrangements in force, Central Rand Gold SA ("CRGSA"), the main operating subsidiary of the Company, can call upon its shareholders for funding of ongoing exploration and development activities in proportion to the shareholdings held in CRGSA.
Throughout 2008 and as noted in CRG's results for the year ended 31 December 2007, CRGSA has been in discussions with Puno, as a 26 per cent shareholder in CRGSA, over funding arrangements and also the make-up of the parties interested in Puno as a body representing a broad base of historically disadvantaged South Africans.
As detailed in CRG's flotation prospectus, Puno was considered an appropriate partner for CRGSA as it was believed to be well placed to facilitate dialogue with local communities regarding socio-economic upliftment programmes and environmental sustainability. During the course of CRGSA's unprecedented community and social consultation programme of 2008, CRGSA held various community meetings where as many as 20,000 people attended.
To date, Puno has neither fulfilled its funding obligations stipulated in the shareholder's agreement nor demonstrated its commitment to the communities it was expected to represent, as it has not attended any of the community and social consultation meetings.
Subsequently, Central Rand Gold Netherlands Antilles ("CRGNV"), the Central Rand Gold Group company directly holding shares in CRGSA, has on 16 February 2009 exercised the call option granted to it in terms of the CRGSA Shareholders Agreement and given the requisite 90 days' notice, as provided for under the shareholder's agreement to acquire Puno's entire interest in CRGSA. This shareholding will be held in trust pending the outcome of discussions relating to new BBBEE arrangements with other interested parties who have clearly stated commitment to ensuring a broader based community involvement in the Central Rand project.
The future changes in the BBBEE arrangements will not have any effect upon CRG achieving its initial target annualised production of 100,000ozpa by the end of 2009, or the planned ramp up of production beyond 100,000ozpa in 2010.
Commenting on the changes in the BBBEE arrangements Alastair Walton, Chairman of CRG stated:
"The CRG project is of fundamental importance to the Johannesburg and Gauteng region. It will create a whole new generation of mining and associated businesses in the area. It has always been CRG's strategy to maximise the considerable opportunities for the local communities which this project will bring. As such, we are committed to ensuring that our BBBEE is precisely what it is meant to be - broad based and for the benefit of the communities and all the stakeholders involved in this exciting project."
Issued on behalf of: Central Rand Gold Limited
Date: 16 February 2009
Contact:
Johan du Toit +27 (0) 11 551 4000
Wayne Epstein +27 (0) 11 551 4000
Enquiries:
Evolution Securities Limited +44 (0) 20 7071 4300
Simon Edwards / Chris Sim / Neil Elliot
Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 2307
Thato Morojele / Annerie Britz
Buchanan Communications Limited +44 (0) 20 7466 5000
Bobby Morse / Ben Willey
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 772 1033
Jenni Newman / Megann Outram
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