Proposed cancellation of trading on AIM

 

TIDMCAN 
 
RNS Number : 3832W 
Central African Gold PLC 
18 November 2010 
 
 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 
18 November 2010 
                Central African Gold Plc ('CAG' or 'the Company') 
              Proposed cancellation of admission to trading on AIM 
 
Central African Gold Plc, the AIM quoted gold mining and exploration company, 
today announces that, following completion of the comprehensive strategic 
review, previously announced on 15 July 2010, it is the intention of the board 
of directors of CAG ('the Board') to seek shareholder approval to cancel 
admission of the Company's ordinary shares of 0.1 pence each to trading on AIM 
and to re-register as a private limited company (together, 'the Proposals'). 
 
The Board has considered the ongoing costs, management time and regulatory and 
reporting requirements of maintaining its admission to AIM and believes that 
these costs and requirements can no longer be justified, particularly in light 
of the current liquidity and market capitalisation of the Company, as well 
as CAG's new ownership structure (whereby NDM (UK) Limited ('NDM UK'), a wholly 
owned subsidiary of New Dawn Mining Corp. ('NDM'), a Toronto Stock Exchange gold 
exploration and production company, holds 88.68 per cent. of the Company's 
issued share capital). 
 
Accordingly, a circular ('the Circular') and notice of general meeting ('the 
GM') will be sent to shareholders, requesting that shareholders approve the 
Proposals, at the GM, later this quarter. 
 
NDM UK has indicated to the Board that it will vote in favour of the Proposals 
at the GM.  Accordingly, the Board anticipates that the Proposals will be 
approved at the GM, as the requisite approval threshold is 75 per cent. of votes 
cast by shareholders at the GM. 
 
Further details on the precise structure of the Proposals and on the 
implications for shareholders of the Proposals becoming effective will be 
announced in due course and will be included in the Circular to be sent to 
shareholders later this quarter. 
 
 
                                  * * ENDS * * 
 
For further information please visit www.centralafricangold.comor contact: 
 
+-------------+------------------------+---------------------+ 
| Roy         | Central African Gold   | Tel: [phone]  | 
| Pitchford / | Plc                    | 9985                | 
| Ian         |                        | Tel: [phone]   | 
| Saunders    |                        | 7890                | 
+-------------+------------------------+---------------------+ 
|             |                        |                     | 
| 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 per cent. shareholder is NDM UK, a wholly owned subsidiary 
of NDM, a gold 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 four to five years. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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