Central Rand Gold has entered into a new US$1 million loan agreement to fund its working capital needs and to acquire a concentrator. The loan, entered into with investor Jia Bang Wang, will be provided to the JSE and LSE-listed company in two tranches, with the first tranche of US$500 000 having already been received by the company and a further US$500 000 becoming available on or by 31 March 2017.
The principal and accrued interest on the loan (at the UK’s prime lending rate plus 2% per annum) is repayable by Central Rand Gold on or by 9 July 2017.
The board of directors of Central Rand Gold believe that the loan will provide the company with sufficient working capital for the immediate future and for the procurement, shipping, installation and commissioning of a concentrator circuit.
As announced on 6 October 2016, Central Rand Gold has executed an agreement to acquire mine waste dumps that contain 2.3 Mt of gold bearing materials, with an average in-situ grade of 0.7g/t.
As a result of the successful conclusion of the concentrator test work conducted in 2016, Central Rand Gold has resolved to procure a concentrator circuit to upgrade the gold grade of the mine waste dumps materials before further metallurgical processing. Shipment and installation is expected by the second quarter of 2017.
Central Rand Gold said that it had further commissioned Mill No 1 in November 2016. Together with Mill No 3, it is able provide a nameplate milling capacity of 800 tpd.
Central Rand Gold also announced that Simon Charles has joined the board as the independent non-executive chairman of the company with immediate effect, replacing interim chairperson Nathan Taylor.
Charles is a senior partner in a firm of solicitors, Marriott Harrison, and heads that firm’s Equity Capital Markets team.
In addition, the company also appointed Lola Trollip, as CEO with immediate effect. Prior to the appointment, Trollip was acting CEO and MD of Central Rand Gold (Netherlands Antilles) and, for the past nine months, CE of Central Rand Gold South Africa.
Wei Fan (William) Zhuang has joined the board as a non-executive director with immediate effect, while Mark Austin has stepped down as non-executive director.