CENTRAL RAND GOLD LIMITED - Financing UpdateRelease Date: 05/10/2017 11:00:00 Code(s): CRD PDF(s):
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)
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the “Company” or the “Group”)
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 +44 (0) 20 7060 2220
Peterhouse Corporate Finance Limited – Broker +44 (0) 20 7469 0930
Lucy Williams / Fungai Ndoro
Merchantec Capital +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
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").
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