CIC Gold Group Limited Corporate Update (3378T)

TIDMCICG

RNS Number : 3378T

CIC Gold Group Limited

04 January 2017

CIC GOLD GROUP LIMITED

("CIC Gold" or the "Company")

Operational Update

CIC Gold (LSE: CICG) is pleased to provide the following general corporate update.

Progress of Company Listing

The Company continues to progress the re-admission prospectus following the Gobi Minerals acquisition and eligibility review. The Company, following the release of an RNS on January 12, 2016 was subject to a UK Listing Authority ("UKLA") enquiry regarding the Enlarged Group. The Compnay is working closely with the UKLA to resolve the enquiry.

Share Placement

The Company RNS June 4, 2016 announced that the Company will facilitate the sale by way of a placing of 70 million of the 280 million shares to be issued as consideration for the acquisition to the beneficial owners of Gobi Minerals to ensure that on Re-Admission the Company meets the free float regulatory requirement of having at least 25% of its issued share capital in the hands of European Economic Area residents (Listing Rule LR 14.2.2R).

The Company advises that these 70 million shares are to be disposed of at the last share trading price of 1.45 UK pence per share. Shareholders are advised that market makers and other investors have committed to purchase said shares. The Company advises that it will place existing shareholders first (excluding insiders) and will conclude the share allocations in the next 10 working days for issue in the re-admission completion phase. Shareholders or Nominees seeking any of the said shares are to contact the Company by email. (email address below).

Working Capital

During 2016 the Company entered into convertible loans with CIC Capital Fund Ltd. ("CIC Fund") GBP1,200,000 and a Hong Kong Syndicate GBP1,076,000.. These loans are sufficient to meet historical debts and to fully fund the Expanded Group over the next 12 months.

CIC Capital Fund Ltd, is a Canadian close ended fund public issuer. The dealings with CIC Fund and its management is a regulatory requirement and there is no influence or control over the Company or its affairs.

The Hong Kong Syndicate convertible loan can only be drawn following the conclusion of the regulatory enquires or the re-admission process.

The Company, as at June 30, 2016, had cash at bank of GBP395,810 to cover working capital in China. The Company continues to draw on CIC Fund loan for regulatory compliance costs only.

ENQUIRIES

 
 HE U. Barsbold [e-mail] 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 04, 2017 06:43 ET (11:43 GMT)