Central Rand Gold Limited Application Abandonment and Operational Update (6665L)

TIDMCRND

RNS Number : 6665L

Central Rand Gold Limited

20 July 2017

 
                      Central Rand Gold Limited 
   (Incorporated as a company with limited liability under the laws 
                             of Guernsey, 
                        Company Number 45108) 
  (Incorporated as an external company with limited liability under 
                      the laws of South Africa, 
                 Registration number 2007/019223/10) 
                          ISIN: GG00B92NXM24 
               LSE share code: CRND JSE share code: CRD 
                ("Central Rand Gold" or the "Company") 
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 ABANDONMENT OF APPLICATION BY PUNO GOLD INVESTMENTS FOR THE WINDING 
                  UP OF CRGSA AND OPERATIONAL UPDATE 
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Application Abandonment

An application for the winding up of Central Rand Gold South Africa Proprietary Limited ("CRGSA"), a subsidiary of the Company, was brought by Puno Gold Investments Proprietary Limited ("Puno") in April 2015 ("the Application"). The board of directors of the Company considered the Application to be without merit and engaged legal advisors to defend the action, which was lodged in May 2015. To date, no further action pertaining to the Application has been undertaken by Puno.

The matter was finalised in July 2017, with Puno withdrawing the Application on the basis that each party pays its own costs. This proposal was accepted by CRGSA.

Operational Update

The operations at Central Rand Gold have achieved a steady-state in the past two months, from May 2017, with operations having stabilised. The Company shall announce in September, along with the interim report, specific details of the production figures from January to June 2017.

Various tolling arrangements are being considered in order to build in flexibility and to optimise the plant throughput.

The concentrator circuit, which has now been despatched from China and is expected to be on site in mid-August 2017, is anticipated to become operational in the last quarter of 2017.

For further information, please contact:

Central Rand Gold [phone]

Lola Trollip

ZAI Corporate Finance Ltd - Nominated Adviser & Broker [phone]

John Treacy

Brandon Hill Capital - Broker [phone]

Jonathan Evans / Wei Jiao

Merchantec Capital - JSE Sponsor [phone]

Monique Martinez / Marcel Goncalves

Johannesburg

20 July 2017

The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR").

This information is provided by RNS

The company news service from the London Stock Exchange

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July 20, 2017 11:00 ET (15:00 GMT)