CRD - Central Rand Gold Limited - Lodgement of court papers and Gold production Release Date: 28/11/2011 09:00:09 Code(s): CRD
CRD - Central Rand Gold Limited - Lodgement of court papers and Gold production
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
Registration number 2007/0192231/10)
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the "Company")
LODGEMENT OF COURT PAPERS AND GOLD PRODUCTION
Lodgement of court papers
There continues to be no resolution to the dispute relating to alleged
procedural breaches of the Central Rand Gold South Africa (Proprietary) Limited
("CRGSA") Shareholders` Agreement ("Shareholders Agreement") entered into
between Central Rand Gold Netherlands Antilles ("CRGNV") and its current Black
Economic Empowerment ("BEE") partner, Puno Gold Investments (Proprietary)
The dispute relates to the shareholder funding provisions of the Shareholders
Agreement and the related allocation of intercompany loans which fund the budget
and work programme.
In order to suspend protracted litigation, the parties agreed in 2009 to refer
the matter to arbitration pursuant to the dispute resolution mechanism under the
Shareholders` Agreement. However due to the inaction of Puno in bringing matters
before the Arbitration Foundation of South Africa, CRGNV and CRGSA on 25
November 2011, filed an application with the High Court of South Africa
("Application"), following which the papers were served on Puno by the Sheriff
of the High Court.
This application seeks to discharge the interdict obtained on 13 May 2009
prohibiting CRGSA and CRGNV from proceeding with an option to call for Puno`s
entire shareholding in CRGSA, and in the alternative requests that a court order
be granted appointing an arbitrator to arbitrate on the dispute between the
parties and furthermore stipulate the time period within which such arbitration
needs to be conducted to completion.
In the event that this application is unopposed, the hearing of the matter will
commence on 13 December 2011.
However, in the likely event that a notice of intention to oppose the
application be received, the matter will be set down for hearing on the opposed
roll, in such event a court date in early 2012 will be allocated for the hearing
of the matter.
The Company refers its shareholders to the Interim Management Statement released
on 18 November 2011 wherein it was stated that gold production for the year up
to October 2011 amounted to 12,116 ounces and that the Company expects to
produce approximately 1,000 ounces per month for the remainder of the year.
Accordingly, the Company hereby confirms that its annual 2011 gold production is
expected to be between 14,000 and 15,000 ounces.
For further information, please contact:
Central Rand Gold +27 (0) 11 674 2304
Johan du Toit / Patrick Malaza
Evolution Securities Limited +44 (0) 20 7071 4300
Chris Sim / Neil Elliot
Merchantec Capital +27 (0) 11 325 6363
Roger Pitt / Monique Martinez
Buchanan +44 (0) 20 7466 5000
Bobby Morse / James Strong
Jenni Newman Public Relations (Proprietary) Limited +27 (0) 11 506 7351
28 November 2011
Date: 28/11/2011 09:00:09 Supplied by www.sharenet.co.za
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