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")
UPDATE ON THE POTENTIAL SALE OF CENTRAL RAND GOLD (NETHERLANDS ANTILLES) N.V.
As previously announced on 15 June 2015, the board of directors of Central Rand Gold ("the Board") had targeted a completion date for the execution of a binding agreement by 12 June 2015 for the acquisition of the Company's subsidiary Central Rand Gold ( Netherlands Antilles) N.V., which date was subsequently extended to 15 July 2015 at the request of both Huili Resources (Group) Limited ("Huili") and Hiria Group Company Limited ("Hiria"). The purpose of the extension was to enable both Huili and Hiria to complete outstanding due diligence processes and advance commercial negotiations to a point which can be presented to shareholders.
Since the announcement dated 15 June 2015, the Company has worked closely with both Huili and Hiria to finalise their respective due diligence processes and provides shareholders with the following update:
Hiria Group Company Limited
The Company has worked closely with Hiria over the past four weeks to resolve both technical due diligence and commercial items. Central Rand Gold has been impressed by the level of engagement from both Hiria and its financial partners, Hangzhou Everbright Private Equity Investment Management ("Hangzhou Everbright"). The Company is encouraged by the progress of discussion and is pleased to advise that negotiations are now substantively focused on commercial and structural issues. Central Rand Gold is exploring a number of structural alternatives with Hiria and Hangzhou Everbright which range from the acquisition of Central Rand Gold (Netherlands Antilles) N.V. to a strategic investment into the Company. The Company is presently hosting Mr Ni, the Chief Executive Officer of Hiria, along with other senior Hiria executives in Johannesburg. Discussions will continue with Hiria until an outcome which can be presented to shareholders is reached.
Huili Resources Group Limited
Central Rand Gold has worked closely with Huili over the past four weeks. The discussions have been focused around various technical due diligence items largely focused on the future dewatering of the Central Basin below 225 metres below surface and surrounding surface and open pit resource opportunities. The discussions continue to progress towards completion and the Company will advise shareholders once a resolution is achieved. Finally, the Company confirms that Huili's right of first purchase, within 21 days of a third party offer being received for Central Rand Gold (Netherlands Antilles) N.V., as announced on 12 February 2015, remains in place.
The Board cautions that at this time there can be no certainty that the discussions with both Huili or Hiria will lead to a binding agreement being entered into by either party, nor that the potential sale of Central Rand Gold (Netherlands Antilles) N.V., or any other transaction will be completed.
For further information, please contact:
Central Rand Gold +27 (0) 87 310 4400
Johan du Toit / Nathan Taylor
Charles Stanley Securities Limited +44 (0) 20 7149 6478
Mark Taylor
Merchantec Capital +27 (0) 11 325 6363
Monique Martinez / Marcel Goncalves
Johannesburg
16 July 2015
Sponsor
Merchantec Capital