TIDMCRND
RNS Number : 7784T
Central Rand Gold Limited
10 January 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 2007/019223/10)
ISIN: GG00B92NXM24
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the "Company")
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Replacement: Loan Agreement, Operational Update,
Board Changes, Appointment of Nominated Adviser
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The following amendment has been made to the 'Loan Agreement,
Operational Update, Board Changes, Appointment of Nominated
Adviser' announcement released on Tuesday, 10 January 2017 at 07:00
(UK time) under RNS No 7338T and at 09:00 (SA time) on SENS.
Lola Trollip
Current Directorships:
Central Rand Gold NV
Ferreira Estate and Investment Company Limited
Former Directorships:
Turbo Tech Pumps Limited
Hanlo Mining Supplies Close Corporation
Hanlo Labour Hire Close Corporation
There is nothing more to disclose in accordance with AIM Rule 17
or Schedule 2(g) of the AIM Rules.
All other details remain unchanged.
The full amended text is shown below.
Loan Agreement
Further to the announcement dated 25 November 2016, the Company
hereby announces that it has entered into a new loan agreement
("the Loan Agreement") with Mr Jia Bang Wang ("Mr Wang") for
funding in the amount of US$1 million ("Loan"). The Loan will be
provided in two tranches, with the first tranche of US$500 000
having already been received by the Company and a further US$500
000 becoming available on or by 31 March 2017. The principal and
accrued interest on the Loan (at the UK's prime lending rate plus
2% per annum) is repayable by the Company on or by 9 July 2017.
Interest accrues and capitalises from day to day, from the day any
part of the Loan is advanced until and including the day the whole
of the Loan is repaid.
The board of directors of Central Rand Gold ("Board") believe
that the Loan will provide the Company with sufficient working
capital for the immediate future and for the procurement, shipping,
instalment and commissioning of a Concentrator Circuit. As
announced on 6 October 2016, the Company has executed an agreement
to acquire Mine Waste Dumps that contain 2.3 million tonnes of gold
bearing materials, with an average in-situ grade of 0.7g/t. As a
result of the successful conclusion of the concentrator test work
conducted in 2016, the Company has resolved to procure a
Concentrator Circuit to upgrade the gold grade of the Mine Waste
Dumps materials before further metallurgical processing. The
Concentrator Circuit will contain centrifugal concentrators,
scrubber, de-watering screens, water/slurry pumps and other
ancillary equipment. The Board, which is currently in negotiations
with the Concentrator Circuit's manufacturers, anticipates that it
will be in a position to start placing orders for the equipment
this quarter, thus allowing for shipment and installation by the
second quarter of 2017.
Operational Update
As previously announced, the Company commissioned Mill No 1 in
November 2016. Together with Mill No 3, both mills are able to
provide a nameplate milling capacity of 800 tonnes per day. Subject
to production downtime, the Company has been processing
approximately 500 tonnes of toll treatment materials per day for
the past six weeks. Management is committing to minimising
production downtime and improving production efficiency to carry
the current operation until the Concentrator Circuit has been
installed and commissioned. The pumping of the water in the Central
Basin is, and has always been, the responsibility of Trans-Caledon
Tunnel Authority (TCTA), a South African government institution.
During the past two months, Johannesburg has experienced higher
than normal rainfall, causing the water levels to rise to 143.2
vertical meters below surface, being the same level as at the
beginning of 2016.
Board Changes
The Company is delighted to announce that Simon Charles has
joined the Board as the Independent Non-Executive Chairman of the
Company with immediate effect. Mr Charles is a senior partner in a
firm of solicitors, Marriott Harrison LLP, and heads that firm's
Equity Capital Markets team. In addition, Mr Charles sits on the
board of another AIM company, Imaginatik Plc, and is a member of
the QCA's Corporate Finance Experts group. He is a former Qualified
Executive for the purposes of the AIM Rules for Nominated Advisers
and was a regulated individual in Numis Securities Limited
providing Main Market sponsor advisory services. Mr Charles advises
a number of Nominated Advisers and companies on, amongst other
things, matters pertaining to resources.
The Company is also pleased to announce that Lola Trollip,
acting Chief Executive Officer and Managing Director of Central
Rand Gold (Netherlands Antilles) N.V. and, for the past nine
months, Chief Executive Officer of Central Rand Gold South Africa
Proprietary Limited, has joined the Board as Chief Executive
Officer with immediate effect.
Furthermore, the Company is pleased to announce that Wei Fan
("William") Zhuang has joined the Board as a Non-Executive Director
with immediate effect.
Nathan Taylor and Mark Austin have stepped down as Interim
Non-Executive Chairman and Non-Executive Director, respectively.
The Board would like to thank Nathan and Mark for their efforts
over the course of their service.
Appointment of Nominated Adviser & Broker
The Company is pleased to announce the appointment of ZAI
Corporate Finance Limited as its Nominated Adviser and Broker with
immediate effect.
Related Party Transaction
The Loan is regarded as a related party transaction as defined
by the AIM Rules for Companies due to the extent of Mr Wang's
shareholding in the Company, amounting to 19,704,434 ordinary
shares of the Company, representing 9.48% per cent. of the ordinary
shares currently in issue. The Board, having consulted with ZAI
Corporate Finance Limited, the Company's Nominated Adviser,
believes that the terms of this related party transaction are fair
and reasonable insofar as the shareholders of the Company are
concerned.
Relationship Agreement
Reflecting his material shareholding and the additional
provision of the Loan described above, the Company has entered into
a relationship agreement with Mr Wang and ZAI Corporate Finance, as
Nominated Adviser, which regulates the continuing relationship
between Mr Wang and the Company so as to ensure that the Company
will at all times be capable of carrying on its business
independently of Mr Wang. The Company has also entered into a
separate relationship agreement with each of Redstone Capital
Limited and Mr Yizhou Gu and in each case ZAI Corporate Finance as
Nominated Adviser which similarly guarantee that the Company will
at all times be capable of carrying on its business
independently.
Statement from the Chairman
"I am delighted to be joining the Board of Central Rand Gold at
this key stage in its development. I would very much like to
congratulate Lola on her appointment as CEO, she has added
considerable expertise and "grip" to operations since joining as
Managing Director of our operating company. Together with the other
directors, in the light of the additional capital and the
Concentrator Circuit proposed to come on stream this year, we are
confident that the Company is now well positioned to implement its
core strategy of generating revenue from our assets and delivering
meaningful returns for our shareholders."
The following details in relation to the appointment of Mr
Charles, Ms Trollip and Mr Zhuang are disclosed in accordance with
Schedule 2(g) of the AIM Rules:
Simon Charles
Current Directorships and Partnerships:
Drewry Limited
Financial Holdings Limited
Imaginatik PLC
IOMA Group (UK) Limited
Isle of Man Assurance Limited
Strategic Counsel Partners LLP
Sweet Truck Haul Limited
Marriott Harrison LLP
MH Secretaries Limited
MH Nominees Limited
The Invicta Film Partnership No.22 LLP
Previous Directorships:
Ahealth Informatics Limited
Caterham Barracks Community Trust
DKG Capital PLC
Magwitch Media Partners Limited
MH Directors Limited
MH Directors(2) Limited
SRC Capital Limited
Lola Trollip
Current Directorships:
Central Rand Gold NV
Ferreira Estate and Investment Company Limited
Former Directorships:
Turbo Tech Pumps Limited
Hanlo Mining Supplies Close Corporation
Hanlo Labour Hire Close Corporation
Wei Fan Zhuang
Current Directorships:
Central Rand Gold South Africa Proprietary Limited
Redstone Capital Limited
Sea Bright Investments Limited
MP Mining International Pty Limited
Beijing Songfeng Redstone Consulting Co Limited
Previous Directorships:
Roc Salt Limited
There is nothing more to disclose in accordance with AIM Rule 17
or Schedule 2(g) of the AIM Rules.
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 / Jamie Spotswood
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
10 January 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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