Central Rand Gold Limited Suspension of Trading (9122E)

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 [phone]

Lola Trollip

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

John Treacy

Brandon Hill Capital Limited - Broker [phone]

Jonathan Evans / Wei Jiao

Merchantec Capital - JSE Sponsor [phone]

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)