CENTRAL RAND GOLD LIMITED - Industrial Relations Update and Iprop DisputeRelease Date: 17/05/2017 11:27:00 Code(s): CRD PDF(s):
Industrial Relations Update and Iprop Dispute
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)
LSE share code: CRND JSE share code: CRD
(“Central Rand Gold” or the “Company”)
Industrial Relations Update and Iprop Dispute
Industrial Relations Update
The Company is pleased to announce that following robust negotiations, it has reached agreement with
union representatives that the industrial action, as announced to shareholders on 10 May 2017, will now
The Company has agreed that, a bonus payment in the form of a "13th cheque" will be paid in
December 2017. This bonus payment will be equivalent to 50% of each employee’s basic pay.
The Company has been informed that union representatives have notified their members of the
aforementioned, and that all employees have returned to work today.
Whilst this is clearly positive news for the Company, approximately 11 days of production have been
lost. Some time is therefore required for operations to resume at usual levels and for management to
assess the consequences of the strike on the Company’s plant.
On 1 January 2005, Central Rand Gold South Africa Proprietary Limited (“CRGSA”) acquired the entire
shareholding of Ferreira Estate Investment Company Limited (“FEIC”) from IPROP Proprietary Limited
(“IPROP”), and IPROP’s subsidiary, Industrial Zone Proprietary Limited (“INZO”). FEIC is the holder of
the mining right which the Company currently holds, and which is under renewal. In order to use this
right, FEIC required the use of certain surface areas owned by INZO. As a consequence, CRGSA
entered into certain lease agreements with INZO for the lease of areas of INZO/IPROP’s land (the
IPROP contends that a dispute arose in 2009 between the parties as to the Lease Agreements, which
culminated in a settlement agreement (the “Agreement”) entered into on or around 9 November 2009.
As part of the settlement terms, and apart from any payment entitlements, IPROP was entitled to have
the Agreement made an order of Court. IPROP does not immediately allege a pecuniary debt owed in
terms of the Agreement, however it does appear that a dispute in relation to the conclusion of future
leases emanating from the Agreement subsists.
The present application seeks to have the Agreement ratified by Court order, the effect of which would
be to make the terms of the Agreement enforceable and to the extent that any pecuniary debts remain
unpaid, making those immediately recoverable.
The Court hearing is scheduled for 19 May 2017. The Company continues to negotiate with IPROP and
hopes to reach a commercially satisfactory arrangement. However, the outcome cannot be guaranteed.
The Company’s cash position remains extremely challenging, and whilst the directors of the Company
(“Directors”) continue to make every effort to secure financing solutions, no guarantee can be made that
these negotiations will be concluded successfully. The Directors are therefore considering a number of
solutions, which include the sale of the Company’s operating assets. As a consequence, further to the
announcement of 11 May 2017 the Company’s shares will remain suspended for the time being
pending further developments.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
ZAI Corporate Finance Ltd - Nominated Adviser & Broker +44 (0) 20 7060 2220
Brandon Hill Capital Limited – Broker +44 (0) 20 3463 5000
Jonathan Evans / Wei Jiao
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
17 May 2017
The information communicated in this announcement is inside information for the purposes of Article 7
of Market Abuse Regulation 596/2014 ("MAR").
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