Central Rand Gold Limited Strategic Investment Update, Shareholder Loan (1718Q)

TIDMCRND

RNS Number : 1718Q

Central Rand Gold Limited

25 November 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 2007/019223/10) 
                 ISIN: GG00B92NXM24 
      LSE share code: CRND JSE share code: CRD 
       ("Central Rand Gold" or the "Company") 
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   Strategic Investment Update, Shareholder Loan 
            and Related Party Transaction 
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Strategic Investment Update

As previously announced on 12 September 2016 and 25 October 2016, 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").

Shareholder Loan

The Board of Directors of Central Rand Gold is pleased to announce that as a prepayment to the Strategic Investment, on 1 August 2016 Central Rand Gold received an unsecured loan of US$500,000 from Mr Jiabang Wang, an existing shareholder in the Company (the "Wang Loan"). The Wang Loan, which carries a zero interest coupon and has an indefinite term, is currently partially drawn as from 4 August 2016.

In addition, on 1 August 2016, the Company received a further unsecured loan of US$98,000 from Mrs Jiang Hong Zhu, an existing shareholder in the Company (the "Zhu Loan"). The Zhu Loan, which carries a zero interest coupon and has an indefinite term, is also currently partially drawn.

The Wang Loan and the Zhu Loan are being used to meet Central Rand Gold's near-term funding requirements and to provide additional working capital to the Company. The Company will update shareholders upon finalisation of the Strategic Investment, which remains subject to amendment and binding documentation. It is currently anticipated that the Wang Loan will be incorporated into the Strategic Investment. However, no assurances can be given with respect to the finalisation of the Strategic Investment at this stage.

Related Party Transaction

Mr Wang currently holds approximately 10.4% of Central Rand Gold's issued ordinary share capital and as such is considered to be a related party of the Company as defined by the AIM Rules. The Wang Loan therefore constitutes a related party transaction pursuant to AIM Rule 13.

The Directors of Central Rand Gold, having consulted with the Company's nominated adviser, Panmure Gordon (UK) Limited, considers that the terms of the Wang Loan are fair and reasonable insofar as its shareholders are concerned.

For further information, please contact:

Central Rand Gold [phone]

Lola Trollip / Nathan Taylor

Panmure Gordon (UK) Limited - Nominated Adviser & Broker [phone]

Adam James / James Greenwood

Merchantec Capital - JSE Sponsor [phone]

Marcel Goncalves / Monique Martinez

25 November 2016

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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November 25, 2016 03:30 ET (08:30 GMT)