Central Rand Gold Limited Memorandum of Understanding Update (2770Y)
September 07 2015 - 6:00AM
UK Regulatory
TIDMCRND
RNS Number : 2770Y
Central Rand Gold Limited
07 September 2015
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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