Increase of Facility Agreement

 

TIDMCAN 
 
RNS Number : 7126X 
Central African Gold PLC 
10 December 2010 
 

 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 
10 December 2010 
                Central African Gold Plc ('CAG' or 'the Company') 
                         Increase of Facility Agreement 
 
Central African Gold Plc, the AIM quoted gold mining and exploration company, 
announces that its major shareholder, New Dawn Mining Corp. ('NDM'), has agreed 
to increase the quantum of the loan facility previously made available to the 
Company ('the Facility Agreement'), as announced by CAG on 17 August 2010, from 
US$2.0 million to US$5.0 million. 
 
The additional funds made available under the terms of the Facility Agreement 
will be made available to the Company solely to support CAG's ongoing 
operational and working capital requirements and cannot be used to repay any 
intra-group indebtedness of the Company.  There have been no other changes to 
the terms of the Facility Agreement. 
 
As NDM is a substantial shareholder in the Company, the amendment to the 
Facility Agreement is classified as a related party transaction in accordance 
with the AIM Rules. 
 
Accordingly, the independent director, being Roy Pitchford, having consulted 
with Strand Hanson Limited ('Strand Hanson'), the Company's nominated adviser, 
considers the terms of the amended Facility Agreement to be fair and reasonable 
insofar as the Company's shareholders are concerned.  In providing its advice, 
Strand Hanson has taken into account the independent director's commercial 
assessments. 
 
                                  * * ENDS * * 
 
For further information please visit www.centralafricangold.comor contact: 
 
+-------------+------------------------+---------------------+ 
| Roy         | Central African Gold   | Tel: [phone]  | 
| Pitchford   | Plc                    | 9985                | 
+-------------+------------------------+---------------------+ 
|             |                        |                     | 
| Stuart      | Strand Hanson Limited  | Tel: [phone]  | 
| Faulkner /  |                        | 3494                | 
| James       |                        |                     | 
| Spinney     |                        |                     | 
+-------------+------------------------+---------------------+ 
|             |                        |                     | 
| Hugo de     | St Brides Media and    | Tel: [phone]  | 
| Salis /     | Finance Ltd            | 1177                | 
| Felicity    |                        |                     | 
| Edwards     |                        |                     | 
+-------------+------------------------+---------------------+ 
 
Notes to Editors 
 
CAG 
Central African Gold Plc is a gold mining company with a portfolio of 
production, development and exploration assets in Zimbabwe, where the Company 
operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7 per cent. 
owned) and Olympus Gold Mines Limited (100 per cent. owned).  Through these 
subsidiaries, CAG has five main gold mines, the Dalny, Old Nic, Golden Quarry, 
Venice and Camperdown mines, which are located in the highly prospective Kadoma, 
Shurugwi and Bulawayo gold regions in Zimbabwe. 
 
NDM 
The Company's 88.68% shareholder is Toronto Stock Exchange listed New Dawn 
Mining Corp. ('NDM'), a gold mining company with a broad portfolio of production 
and exploration assets also in Zimbabwe.  NDM owns and operates the Turk and 
Angelus Mines in the upper southwest area of Zimbabwe, which it believes have 
the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. 
 It is NDM's objective to orchestrate the development of CAG's mining operations 
and exploration portfolio, as well as its own, to become a mid-tier gold 
producer focussed in Zimbabwe, with a consolidated annualised gold production to 
between 50,000 and 60,000 ounces within the next 18 to 24 months, increasing to 
100,000 ounces within 4 to 5 years. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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