Central Rand Gold Limited Strategic Investment Update, Shareholder Loan (1718Q)
November 25 2016 - 3:30AM
UK Regulatory
TIDMCRND
RNS Number : 1718Q
Central Rand Gold Limited
25 November 2016
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")
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Strategic Investment Update, Shareholder Loan
and Related Party Transaction
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Strategic Investment Update
As previously announced on 12 September 2016 and 25 October
2016, 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").
Shareholder Loan
The Board of Directors of Central Rand Gold is pleased to
announce that as a prepayment to the Strategic Investment, on 1
August 2016 Central Rand Gold received an unsecured loan of
US$500,000 from Mr Jiabang Wang, an existing shareholder in the
Company (the "Wang Loan"). The Wang Loan, which carries a zero
interest coupon and has an indefinite term, is currently partially
drawn as from 4 August 2016.
In addition, on 1 August 2016, the Company received a further
unsecured loan of US$98,000 from Mrs Jiang Hong Zhu, an existing
shareholder in the Company (the "Zhu Loan"). The Zhu Loan, which
carries a zero interest coupon and has an indefinite term, is also
currently partially drawn.
The Wang Loan and the Zhu Loan are being used to meet Central
Rand Gold's near-term funding requirements and to provide
additional working capital to the Company. The Company will update
shareholders upon finalisation of the Strategic Investment, which
remains subject to amendment and binding documentation. It is
currently anticipated that the Wang Loan will be incorporated into
the Strategic Investment. However, no assurances can be given with
respect to the finalisation of the Strategic Investment at this
stage.
Related Party Transaction
Mr Wang currently holds approximately 10.4% of Central Rand
Gold's issued ordinary share capital and as such is considered to
be a related party of the Company as defined by the AIM Rules. The
Wang Loan therefore constitutes a related party transaction
pursuant to AIM Rule 13.
The Directors of Central Rand Gold, having consulted with the
Company's nominated adviser, Panmure Gordon (UK) Limited, considers
that the terms of the Wang Loan are fair and reasonable insofar as
its shareholders are concerned.
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 2500
Adam James / James Greenwood
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Marcel Goncalves / Monique Martinez
25 November 2016
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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