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CENTRAL RAND GOLD LIMITED - Update on Potential Transaction Between Central Rand Gold and Asian Investors

Release Date: 07/09/2015 13:00:00      Code(s): CRD       PDF(s):  
Update on Potential Transaction Between Central Rand Gold and Asian Investors

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”)


UPDATE ON POTENTIAL TRANSACTION BETWEEN CENTRAL RAND GOLD AND ASIAN INVESTORS


Further to the announcement dated 16 July 2015, shareholders are advised that discussions between
Central Rand Gold and the two Asian Investor Groups namely, Hiria Group Company Limited ("Hiria")
and Huili Resources Group Limited (“Huili”) are continuing.

The major due diligence phase of the transaction was largely completed in June 2015. The recent
discussions with Hiria and Huili have predominantly focused on commercial issues with some minor
technical discussions relating to the dewatering of the basin continuing.

Discussions with Hiria and its financial partner, Hangzhou Everbright Private Equity Investment
Management, are ongoing with various commercial structural alternatives being considered. The
discussions with Hiria have migrated from the acquisition of Central Rand Gold (Netherlands Antilles)
N.V. to that of a significant initial strategic investment in Central Rand Gold Limited (“Strategic
Investment”). The Strategic Investment would be applied to increase the Company’s gold production
capacity and upgrade the Company’s resource base.

Discussions with Huili remain ongoing with a range of commercial issues and technical matters,
largely focused on the continued dewatering of the Central Basin, being discussed and progressed.
The discussions with Huili still contemplate the acquisition of Central Rand Gold (Netherlands Antilles)
N.V., however the progress of discussions has slowed over the past several weeks.

The board of directors of Central Rand Gold (“Board”) is focused to ensure that any transaction
presented to shareholders is as free from conditions as possible and is in a form that can be
timeously completed. These considerations remain guiding principles of the Board, which will be
applied when considering the various alternatives.

The Company continues to caution that 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

Panmure Gordon (UK) Limited                                                +44 (0) 20 7886 2500
Mark Taylor

Merchantec Capital                                                         +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves

7 September 2015
Johannesburg

Sponsor
Merchantec Capital

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