Central Rand Gold Limited Suspension of Trading (9122E)
May 11 2017 - 8:50AM
UK Regulatory
TIDMCRND
RNS Number : 9122E
Central Rand Gold Limited
11 May 2017
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)
ISIN: GG00B92NXM24
LSE share code: CRND JSE share code: CRD
("Central Rand Gold" or the "Company")
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Suspension of Trading
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As reported on 10 May 2017, the negotiation of annual wage
increases has ended in a dead lock, and the employees have embarked
on industrial action in the form of a strike. The Company reports
that relations are worsening and that management of its
subsidiaries have been excluded from the premises, preventing the
Company's Board of Directors from receiving timely and accurate
information about the Company's operations, including the Company's
finances and meaning the Company's operations are not delivering
any cash flow.
Whilst every effort has been made to reach a resolution with the
strikers, the Company continues to lose production days due to the
industrial action and will do so for the immediate future until the
dispute is resolved. Even then, it will take time for the
operations to resume at usual levels. Whilst the Board of Directors
continue to exercise the utmost prudence in the Company's cash
expenditure this loss of revenue combined with recent and
previously announced operational setbacks has materially negatively
affected the Company's cash position.
The Company continues to work with Mr Wang to arrange the
delivery of the final tranche of the loan announced on 10 January
2017 and is reviewing other funding options, but cannot guarantee
successful timely agreement in these discussions.
The Company cannot therefore guarantee that it will be able to
meet its financial obligations as they fall due. The Company has
operational cash commitments totalling approximately US$1m in the
coming month.
The Company has accordingly requested a suspension in trading in
its shares.
The Company hopes to update the market presently.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Lola Trollip
ZAI Corporate Finance Ltd - Nominated Adviser & Broker +44
(0) 20 7060 2220
John Treacy
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
Johannesburg
11 May 2017
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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May 11, 2017 09:50 ET (13:50 GMT)
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