Central Rand Gold Limited Fundraising and operational update (3796A)
March 23 2017 - 11:30AM
UK Regulatory
TIDMCRND
RNS Number : 3796A
Central Rand Gold Limited
23 March 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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Fundraising and Operational Update
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Funding
The Board of Directors of Central Rand Gold ("the Board") is
pleased to announce that the Company has raised GBP300,000 (before
expenses) with certain investors, through the issue of 60,000,000
new ordinary shares ("Placing Shares") at an issue price of 0.5p
per share ("Placing Price"), through its broker, Brandon Hill
Capital ("Brandon Hill"). The funds raised will be used for working
capital, building the concentrator and civil construction. The
Placing Shares will rank pari passu in all respects with all
existing ordinary shares in the Company.
Under the terms of the Placing Agreement, the Company has agreed
to grant warrants to Brandon Hill ("Broker Warrants") over
3,600,000 new ordinary shares (representing 6 per cent of those
Placing Shares allotted to investors as introduced by Brandon
Hill). Each Broker Warrant entitles Brandon Hill to subscribe for
one new ordinary share at the Placing Price per ordinary share. The
Broker Warrants may be exercised within three years from the
admission date of the Placing Shares.
As announced on 10 January 2017, the Company entered into a loan
agreement with Mr Jia Bang Wang of US$1 million. With the first
tranche of US$500,000 having been received, the Company expects the
second tranche of US$500,000 to become available by 31 March
2017.
Application has been made for the 60,000,000 new ordinary shares
to be admitted to trading on AIM ("Admission"). Admission is
expected to occur on 29 March 2017. Following admission of the
Placing Shares, the Company's enlarged issued share capital will
comprise 295,633,285 ordinary shares with voting rights. This
figure of 295,633,285 ordinary shares may be used by shareholders
in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change in their interest in, the share capital of the
Company under the Disclosure Rules and Transparency Rules of the
United Kingdom Listing Authority.
Operational Update
The Company continues to work on executing the strategy of
installing centrifugal concentrators. The anticipated date of
commission thereof is the third quarter of 2017. As previously
announced, the concentrator equipment has been ordered from China
and the Company expects delivery to South Africa to occur in
mid-April 2017.
In the short-term, the Company is taking steps to ensure stable
feedstocks to its metallurgical plant, including open pit mining
and third party batch toll treatment materials targeting continued
gold production and margin improvements. The Company started open
pit mining in slot 4 of the Kimberley reef from 1 March 2017, which
is approximately 2 kilometres from its own metallurgical plant. A
contractor is engaged to assist the mining, loading and
transportation of the open pit materials. The Company expects to
update the market once more data covering a longer period is
available.
For further information, please contact:
Central Rand Gold +27(0) 87 310 4400
Lola Trollip
ZAI Corporate Finance Limited - Nominated Adviser +44 (0) 20
7060 2220
John Treacy / Jamie Spotswood
Brandon Hill Capital Limited - Broker +44 (0)20 3463 5000
Alex Walker / Jonathan Evans / Wei Jiao
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Johannesburg
23 March 2017
Sponsor
Merchantec Capital
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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