Central Rand Gold (CRG) has seen considerable interest in the sale of its central Johannesburg underground gold assets. Three of the interested parties have signed Memorandums of Understanding (MoUs) and the company has set up a virtual data office to allow all parties to perform the due diligence required.
CRG’s Board has cautioned shareholders however, saying that at this time there can be no certainty that the discussions with any of the interested parties will lead to a formal share sale agreement being entered into nor that the potential sale of the subsidiary will be completed.
Nevertheless, physical site visits have already taken place with more visits scheduled for this month and January 2015.
The latest entrant to the process Shengbang Jiabo (Beijing) Consulting Company Limited, contemplates the potential purchase of 100% of the shares held by DBG for a cash consideration of USD$150 million. This is of course subject to completion of due diligence, regulatory approvals, and finalization by end March 2015.
An earlier MOU was signed with Hiria group, a Hong Kong registered company. Hiria is a 100% owned subsidiary of Marsa (Canada) Group Holdings registered in British Columbia, Canada. Marsa have been active in Nickel mining operations in the Philippines, Indonesia and Tanzania. They have expressed an interest to expand in Africa and S.E. Asia.
A third MOU was signed by Ankong Investments, a Beijing registered company and subsidiary of Phoenix Tree Investments.
All three MOUs are substantively consistent with each other and CRG await further requests from the remaining three interested companies.