Extension of maturity date for loan agreements

 

TIDMCAN 
 
RNS Number : 0950N 
Central African Gold PLC 
04 June 2010 
 

 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 
4 June 2010 
                Central African Gold Plc ('CAG' or 'the Company') 
                 Extension of maturity date for loan agreements 
 
Central African Gold Plc, the AIM quoted gold mining and exploration company, 
announces that ECP Africa Fund II PCC ('ECP') and HBD Zim Investments Limited 
('HBD') have agreed to extend the terms of the loans made available to the 
Company, as announced by CAG on 12 February 2010, amounting to US$705,070 and 
US$302,732 respectively.  These loans now have a new maturity date of 29 April 
2012 (previously 29 April 2011) and there have been no other changes to the 
terms of these loans. 
 
In addition, Investec Asset Management (Pty) Limited ('IAM'), ECP and HBD have 
agreed to extend the terms of the convertible loans made available to the 
Company, as announced by the Company on 24 December 2009, amounting to 
US$147,662, US$705,070 and US$397,267 respectively. These convertible loans now 
have a new maturity date of 29 April 2012 (previously 29 April 2011) and there 
have been no other changes to the terms of these convertible loans. 
 
IAM and ECP have agreed further to extend the terms of the loans made available 
to the Company, as described in a circular sent to shareholders on 27 March 
2009, amounting to US$2.2 million and US$1.8 million respectively. These loans 
now have a new maturity date of 29 April 2012 (previously extended to 29 April 
2011 from 14 April 2010 or within five days of the receipt of funds by the 
Company from the sale of its entire shareholding in Mali Goldfields SA and 
Songhoï Resources SA, as announced on 24 December 2009) and there have been no 
other changes to the terms of these loans. 
 
The Board confirms that funds received under these various loan agreements are 
being applied to CAG's Zimbabwean operations and to support the Company's 
general working capital requirements.  The Company is continuing to seek debt 
finance from a number of sources to support further CAG's working capital 
requirements.  Accordingly, a further announcement on the progress of the debt 
finance process will be made in due course. 
 
As ECP, HBD and IAM are substantial shareholders in the Company, the extension 
to these various loan agreements are classified as related party transactions in 
accordance with the AIM Rules.  Accordingly, the independent directors, being 
Roy Pitchford and Craig Campbell, having consulted with Strand Hanson Limited, 
the Company's nominated adviser, consider the terms of the amended loan 
agreements to be fair and reasonable insofar as the Company's shareholders are 
concerned.  In providing its advice, Strand Hanson Limited has taken into 
account the independent directors' commercial assessments. 
 
                                  * * ENDS * * 
 
 
For further information please visit www.centralafricangold.com or contact: 
 
+-------------+------------------------+---------------------+ 
| Roy         | Central African Gold   | Tel: [phone]  | 
| Pitchford / | Plc                    | 9985                | 
| Craig       |                        | Tel: [phone]   | 
| Campbell    |                        | 3654                | 
|             |                        |                     | 
+-------------+------------------------+---------------------+ 
| 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 
Central African Gold Plc is an established gold mining company with a portfolio 
of production and exploration assets in Africa.  The Company has two 
subsidiaries in Zimbabwe: Falcon Gold Zimbabwe Limited (84.7 per cent. owned) 
and Olympus Gold Mines Limited (100 per cent. owned); and a subsidiary in 
southern Botswana with a licence covering 430.3km² of the extension of the 
Kraaipan greenstone belt from South Africa. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCBGGDLSUGBGGS