Central Rand Gold Limited Financing Update (8026S)

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") 
--------------------------------------------------- 
                  Financing Update 
---------------------------------------------------

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

MSCGIBDGCSGBGRU

(END) Dow Jones Newswires

October 05, 2017 05:00 ET (09:00 GMT)

Grafico Azioni Central Rand (LSE:CRND)
Storico
Da Mag 2024 a Giu 2024