16 Jun 2017 16:01
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 2007/019223/10) ISIN: GG00B92NXM24 LSE share code: CRND JSE share code: CRD ("Central Rand Gold" or the "Company") |
Receipt of US$250,000 Loan and Operational Update |
Loan Agreement
Shareholders are referred to the announcement dated 10 May 2017 pertaining to, inter alia, "the Loan Agreement" entered into with Mr. Jia Bang Wang. The Company is pleased to report that it has received a further tranche of the loan in an amount of US$250,000. The majority of this funding will be used to pay for the Concentrator Circuit, as well as the associated shipment and customs clearance costs. The total amount of the loan from Mr. Jia Bang Wang is currently US$1,500,000.
The Company's cash position still remains challenging. The Company has approximately ZAR 6.9m at bank, near term receivables of ZAR 6.1m and near term liabilities of approximately ZAR 9.9m (this includes an amount payable for the Concentrator Circuit which falls due on delivery).
The operating entity has managed to reach a steady state in the production cycle. The metallurgical plant, although not currently operating at full capacity, has consistently milled an average of 500 tons per day. The increase required is reliant on tolling feed, and this will ensure that the full capacity of the plant is reached by the end of June 2017.
The income generated from gold produced and tolling fees has been utilised to pay down outstanding creditors, so as to ensure that historical debtors are reduced.
The Directors believe that the operations are stable and that the recent strike has been fully resolved, with normal working conditions reinstated.
However, the Directors are still considering a number of solutions [to ensure the Company meets its financial obligations]. These solutions may include the sale of the Company's operating assets or a placing, which is likely to be materially dilutive to shareholders. The Directors cannot guarantee that either of the aforementioned options will be successfully achieved.
The Company's shares will remain suspended for the time being pending further developments.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Lola Trollip
ZAI Corporate Finance Ltd - Nominated Adviser & Broker +44 (0) 20 7060 2220
John Treacy
Brandon Hill Capital Limited - Broker +44 (0) 20 3463 5000 Jonathan Evans / Wei Jiao
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Johannesburg
16 June 2017
The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR").