Central Rand Gold Limited Issue of Convertible Security & Operational Update (3929N)
October 25 2016 - 4:00AM
UK Regulatory
TIDMCRND
RNS Number : 3929N
Central Rand Gold Limited
25 October 2016
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")
-----------------------------------------------------
US$240 000 CONVERTIBLE SECURITY WITH BERGEN GLOBAL
AND OPERATIONAL UPDATE
-----------------------------------------------------
The Board of Directors of Central Rand Gold ("the Board") is
pleased to announce that on 24 October 2016 the Company issued a
zero coupon convertible security with the nominal value of US$240
000 (at the purchase price of US$200 000) pursuant to, and subject
to the terms and conditions set out in the convertible securities
issuance deed ("the Deed"), the details of which were disclosed to
the market on 7 June 2016.
In connection with the issuance of this convertible security,
the terms and conditions of the Deed have been amended to provide
for the nominal value and purchase price of the convertible
security as set out above, and to provide that the conversion price
in relation to the convertible security will be at the investor's
election, being either:
(a) 80% (as rounded down to the nearest 0.1 pence) of the
average of five daily volume-weighted average prices of the shares
on AIM (as rounded down to the nearest 0.1 pence) during a
specified period preceding the relevant conversion, with the pounds
sterling exchange rate of each US dollar conversion amount chosen
by the investor during a specified period preceding the relevant
conversion, or
(b) GBP0.0372.
Operational Update
- The Nikkel Mining Contract, the details of which were
disclosed to the market on 7 June 2016, is underway, and material
is being delivered on a continual basis for metallurgical
processing according to the Toll Treatment Agreement;
- The Company is further pleased to announce that Mill No 1 has
been installed and commissioned, and is building up to full
capacity. Full capacity is expected by the end of the first week of
November 2016, with ongoing processing rates conditional upon the
Company having sufficient working capital to fund operations;
and
- As previously announced, the Company is continuing to pursue a
transaction with an existing shareholder of the Company for an
investment of up to US$4 000 000 (the "Strategic Investment"). The
Board highlights that the Strategic Investment remains subject to
amendment, binding documentation and compliance with applicable
rules and regulations and that no assurances can be given with
respect to the Strategic Investment at this stage.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Lola Trollip / Nathan Taylor
Panmure Gordon (UK) Limited - Nominated Adviser & Broker +44 (0) 20 7886 2950
Adam James / James Greenwood
Merchantec Capital - JSE Sponsor +27 (0) 11 325 6363
Marcel Goncalves / Monique Martinez
Johannesburg
25 October 2016
Sponsor
Merchantec Capital
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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