Facility Agreement

 

TIDMCAN 
 
RNS Number : 1631R 
Central African Gold PLC 
17 August 2010 
 

 Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining 
17 August 2010 
                Central African Gold Plc ('CAG' or 'the Company') 
                               Facility Agreement 
 
Central African Gold Plc, the AIM quoted gold mining and exploration company, is 
pleased to announce that, on 12 August 2010, it entered into a loan facility 
agreement with its major shareholder, New Dawn Mining Corp. ('NDM') ('the 
Facility Agreement'), to provide CAG with up to US$2.0 million to support its 
Zimbabwean mining operations. 
 
The funds made available under the terms of the Facility Agreement will be made 
available to both Falcon Gold Zimbabwe Limited (84.7 per cent. owned by CAG) and 
to Olympus Gold Mines Limited (100 per cent. owned by CAG) to support both 
subsidiaries' ongoing operational and working capital requirements. 
 
The Facility Agreement does not have a maturity date and is repayable on demand. 
 
As NDM is a substantial shareholder in the Company, 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 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 primarily 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 four main gold mines, the Dalny, Old Nic, Golden 
Quarry and Camperdown mines, which arelocated in the highly prospective Kadoma, 
Shurugwi and Bulawayo gold regions in Zimbabwe. 
 
NDM 
 
The Company's 88.68% shareholder is TSX listed New Dawn Mining Corp. 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 by 
2014, and then ultimately to 200,000 to 250,000 ounces. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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