25 Oct 2016 10:00
Central Rand Gold Limited(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: GG00B92NXM24 LSE share code: CRND JSE share code: CRD ("Central Rand Gold" or the "Company") |
US$240 000 CONVERTIBLE SECURITY WITH BERGEN GLOBAL AND OPERATIONAL UPDATE |
The Board of Directors of Central Rand Gold ("the Board") is pleased to announce that on 24 October 2016 the Company issued a zero coupon convertible security with the nominal value of US$240 000 (at the purchase price of US$200 000) pursuant to, and subject to the terms and conditions set out in the convertible securities issuance deed ("the Deed"), the details of which were disclosed to the market on 7 June 2016.
In connection with the issuance of this convertible security, the terms and conditions of the Deed have been amended to provide for the nominal value and purchase price of the convertible security as set out above, and to provide that the conversion price in relation to the convertible security will be at the investor's election, being either:
(a) 80% (as rounded down to the nearest 0.1 pence) of the average of five daily volume-weighted average prices of the shares on AIM (as rounded down to the nearest 0.1 pence) during a specified period preceding the relevant conversion, with the pounds sterling exchange rate of each US dollar conversion amount chosen by the investor during a specified period preceding the relevant conversion, or
(b) £0.0372.
Operational Update
- The Nikkel Mining Contract, the details of which were disclosed to the market on 7 June 2016, is underway, and material is being delivered on a continual basis for metallurgical processing according to the Toll Treatment Agreement;
- The Company is further pleased to announce that Mill No 1 has been installed and commissioned, and is building up to full capacity. Full capacity is expected by the end of the first week of November 2016, with ongoing processing rates conditional upon the Company having sufficient working capital to fund operations; and
- As previously announced, the Company is continuing to pursue a transaction with an existing shareholder of the Company for an investment of up to US$4 000 000 (the "Strategic Investment"). The Board highlights that the Strategic Investment remains subject to amendment, binding documentation and compliance with applicable rules and regulations and that no assurances can be given with respect to the Strategic Investment at this stage.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Lola Trollip / Nathan Taylor
Panmure Gordon (UK) Limited - Nominated Adviser & Broker +44 (0) 20 7886 2950
Adam James / James Greenwood
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Marcel Goncalves / Monique Martinez
Johannesburg
25 October 2016
Sponsor
Merchantec Capital
The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR").