Central Rand Gold Limited has so far raised £300,000 before expenses ‘with certain investors’
The fund was raised through the issue of 60,000,000 new ordinary shares at an issue price of 0.5p per share, through its broker, Brandon Hill Capital. The funds raised will be used for working capital, building the concentrator and civil construction. The Placing Shares will rank pari passu in all respects with all existing ordinary shares in the Company.
The company disclosed that Under the terms of the Placing Agreement, the Company has agreed to grant warrants to Brandon Hill over 3,600,000 new ordinary shares (representing 6 per cent of those Placing Shares allotted to investors as introduced by Brandon Hill). Each Broker Warrant entitles Brandon Hill to subscribe for one new ordinary share at the Placing Price per ordinary share. The Broker Warrants may be exercised within three years from the admission date of the Placing Shares.
As announced on 10 January 2017, the Company entered into a loan agreement with Mr Jia Bang Wang of US$1 million. With the first tranche of US$500,000 having been received, the Company expects the second tranche of US$500,000 to become available by 31 March 2017.
Application has been made for the 60,000,000 new ordinary shares to be admitted to trading on AIM. Admission is expected to occur on 29 March 2017. Following admission of the Placing Shares, the Company’s enlarged issued share capital will comprise 295,633,285 ordinary shares with voting rights. This figure of 295,633,285 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Disclosure Rules
and Transparency Rules of the United Kingdom Listing Authority.
Providing an operational update Central Rand Gold said it continues to work on executing the strategy of installing centrifugal concentrators. The anticipated date of commission thereof is the third quarter of 2017. As previously announced, the
concentrator equipment has been ordered from China and the Company expects delivery to South Africa to occur in mid-April 2017.
In the short-term, the Central Rand Gold said it is taking steps to ensure stable feedstocks to its metallurgical plant, including open pit mining and third party batch toll treatment materials targeting continued gold production and margin improvements. The Company started open pit mining in slot 4 of the Kimberley reef from 1 March 2017, which is approximately 2 kilometres from its own metallurgical plant. A contractor is engaged to assist the mining, loading and transportation of the open pit materials. The Company expects to update the market once more data covering a longer period is available.