Central Rand Gold Limited Merorandum of Understanding Update (1771T)
July 16 2015 - 2:00AM
UK Regulatory
TIDMCRND
RNS Number : 1771T
Central Rand Gold Limited
16 July 2015
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")
UPDATE ON THE POTENTIAL SALE OF CENTRAL RAND GOLD (NETHERLANDS
ANTILLES) N.V.
As previously announced on 15 June 2015, the board of directors
of Central Rand Gold ("the Board") had targeted a completion date
for the execution of a binding agreement by 12 June 2015 for the
acquisition of the Company's subsidiary Central Rand Gold
(Netherlands Antilles) N.V., which date was subsequently extended
to 15 July 2015 at the request of both Huili Resources (Group)
Limited ("Huili") and Hiria Group Company Limited ("Hiria"). The
purpose of the extension was to enable both Huili and Hiria to
complete outstanding due diligence processes and advance commercial
negotiations to a point which can be presented to shareholders.
Since the announcement dated 15 June 2015, the Company has
worked closely with both Huili and Hiria to finalise their
respective due diligence processes and provides shareholders with
the following update:
Hiria Group Company Limited
The Company has worked closely with Hiria over the past four
weeks to resolve both technical due diligence and commercial items.
Central Rand Gold has been impressed by the level of engagement
from both Hiria and its financial partners, Hangzhou Everbright
Private Equity Investment Management ("Hangzhou Everbright"). The
Company is encouraged by the progress of discussion and is pleased
to advise that negotiations are now substantively focused on
commercial and structural issues. Central Rand Gold is exploring a
number of structural alternatives with Hiria and Hangzhou
Everbright which range from the acquisition of Central Rand Gold
(Netherlands Antilles) N.V. to a strategic investment into the
Company. The Company is presently hosting Mr Ni, the Chief
Executive Officer of Hiria, along with other senior Hiria
executives in Johannesburg. Discussions will continue with Hiria
until an outcome which can be presented to shareholders is
reached.
Huili Resources Group Limited
Central Rand Gold has worked closely with Huili over the past
four weeks. The discussions have been focused around various
technical due diligence items largely focused on the future
dewatering of the Central Basin below 225 metres below surface and
surrounding surface and open pit resource opportunities. The
discussions continue to progress towards completion and the Company
will advise shareholders once a resolution is achieved. Finally,
the Company confirms that Huili's right of first purchase, within
21 days of a third party offer being received for Central Rand Gold
(Netherlands Antilles) N.V., as announced on 12 February 2015,
remains in place.
The Board cautions that at this time there can be no certainty
that the discussions with both Huili or Hiria will lead to a
binding agreement being entered into by either party, nor that the
potential sale of Central Rand Gold (Netherlands Antilles) N.V., or
any other transaction will be completed.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Johan du Toit / Nathan Taylor
Charles Stanley Securities Limited +44 (0) 20 7149 6478
Mark Taylor
Merchantec Capital +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Johannesburg
16 July 2015
Sponsor
Merchantec Capital
This information is provided by RNS
The company news service from the London Stock Exchange
END
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