Central Rand Gold Limited Loan Agreement and Industrial Action. (6671E)

TIDMCRND

RNS Number : 6671E

Central Rand Gold Limited

10 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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       Loan Agreement and Industrial Action. 
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Loan Agreement

Further to the announcement dated 25 November 2016, regarding "the Loan Agreement" with Mr. Jia Bang Wang, the Company wishes to report that it has received a further tranche of US$250,000. The Company is currently working with Mr. Wang to assist with the release of the balance of the loan monies.

The board of directors are mindful of the Company's cash position, which has been improved by the delivery of this tranche of the loan, and will continue to exercise prudence in its expenditure. The Company will update the market on progress of the shipping, instalment and commissioning of the Concentrator Circuit presently and will provide a further operational update in the coming days.

Industrial Relations Update

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 and Union Officials have met at the CCMA to resolve issues. To date, 10 May 2017, the Company has lost 5 days' production, as a direct result of the strike.

On 9 May 2017, the picketing rules have been signed at the CCMA, thus allowing non-striking workers to return to work. The operation will be run with skeleton staff in the interim.

For further information, please contact:

Central Rand Gold [phone]

Lola Trollip

ZAI Corporate Finance Ltd - Nominated Adviser & Broker [phone]

John Treacy / Tim Cofman

Brandon Hill Capital Limited - Broker [phone]

Jonathan Evans / Wei Jiao

Merchantec Capital - JSE Sponsor [phone]

Monique Martinez / Marcel Goncalves

Johannesburg

10(th) 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

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May 10, 2017 02:00 ET (06:00 GMT)