Central Rand Gold Limited Financing Update (8026S)
05 Octubre 2017 - 4:00AM
UK Regulatory
TIDMCRND
RNS Number : 8026S
Central Rand Gold Limited
05 October 2017
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" or the
"Group")
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Financing Update
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Due to the reasons described in the Company's announcements
dated 23 February 2017, 11 May 2017, 20 July 2017 and 13 September
2017, the Company's operations have been seriously hampered and
have not produced the financial outcomes which management had hoped
for and which the directors consider shareholders deserve. The
ongoing overhead of the Company's listing costs are significant and
are now disproportionate when weighed against the benefits that the
listings on AIM and AltX bring to shareholders.
The Company has previously announced the seriousness of its
financial position and this remains the case. The Company has debt
commitments to Redstone Capital Limited and the Wang family,
amounting to US$ 9.8 million in aggregate, which could be called at
any time. Additionally, the Company and its subsidiaries have trade
and other creditors amounting to a further US$ 7.8 million in
aggregate. Whilst Central Rand Gold South Africa Proprietary
Limited's operations have stabilised operationally, the financial
and operational positions remain fragile. There is a very thin
working capital position at the operating company level with a
negative position within the Company, as mentioned above. The
Company's production for the period 1 January 2017 to 30 June 2017
was 2 320 Troy Ounces.
The Company's overall financial position is negative and the
directors are now actively exploring urgent financing options. In
order to remain a listed, operational mining group, in steady state
and with a view to achieving medium-term profitability, the
directors consider that a cash injection of not less than US$ 20
million would be required. The directors consider that this is very
unlikely to be forthcoming in the near future or at all.
Accordingly, the directors are actively pursuing options which
would involve retaining its listings but will require the disposal
of the Company's interests in its immediate subsidiary company,
Central Rand Gold (Netherlands Antilles) NV, unless it is able to
secure sufficient alternative finance at the required level in the
very near future.
For further information, please contact:
Central Rand Gold +27(0) 87 310 4400
ZAI Corporate Finance Ltd
- Nominated Adviser
John Treacy +44 (0) 20 7060 2220
Peterhouse Corporate Finance
Limited - Broker
Lucy Williams / Fungai Ndoro +44 (0) 20 7469 0930
Merchantec Capital
Monique Martinez / Marcel
Goncalves +27 (0) 11 325 6363
Johannesburg
5 October 2017
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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