Central Rand Gold Limited Tolling Agreement Executed and First Ore Delivery (9563E)

TIDMCRND

RNS Number : 9563E

Central Rand Gold Limited

22 July 2016

 
             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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 Tolling Agreement Executed and First Ore Delivery 
                      Received 
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Further to the "Operational, Financial and Corporate Update and Board Changes" announcement dated 7 June 2016, regarding Toll Treatment and Joint Venture Opportunities, the board of directors of Central Rand Gold is pleased to provide the following update to shareholders.

Joint Venture Tolling Agreement Update

Central Rand Gold is pleased to announce that it has completed and executed the definitive documents which will govern the Joint Venture Tolling Agreement ("Tolling Venture") with the third party supplier of gold bearing ore ("Ore Supplier"). In addition, the Company is pleased to announce that it has received multiple deliveries of gold bearing ore from the Ore Supplier which is presently being stockpiled on site at the Company's metallurgical plant. The Ore Supplier will continue to deliver gold bearing ore to the Company over the coming days, before processing of the material by Central Rand Gold, commencing in late July 2016. The Company is presently conducting metallurgical testing to ensure optimum recoveries of gold are achieved from the material.

Additional Joint Venture Opportunities

The Company continues to advance due diligence and negotiations with additional third parties regarding a variety of joint venture alternatives. Given the commencement of the Tolling Venture, the Joint Venture Opportunities will likely require the nameplate capacity of the Company's existing metallurgical plant to be increased. In this regard, the Company is working closely with Zhejiang Golden Machinery Plant to conduct various testwork and due diligence workstreams regarding the Joint Venture Opportunities and the potential expansion of the existing metallurgical plant. The Company expects to be in a position to update shareholders regarding the Joint Venture Opportunities in the near future.

For further information, please contact:

Central Rand Gold [phone]

Lola Trollip / Nathan Taylor

Panmure Gordon (UK) Limited - Nominated Adviser & Broker [phone]

Adam James / James Greenwood

Merchantec Capital - JSE Sponsor [phone]

Monique Martinez / Marcel Goncalves

22 July 2016

This information is provided by RNS

The company news service from the London Stock Exchange

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July 22, 2016 03:00 ET (07:00 GMT)