31st Mar 2015 11:20
LONDON (Alliance News) - Central Rand Gold Ltd Tuesday said it has extended the completion deadline for the companies interested in purchasing the company's Dutch subsidiary and assets for up to USD150 million to allow them all to complete due diligence.
Central Rand has entered four separate non-binding memorandum of understandings with Huili Resources (Group) Ltd, Shengbang Jiabo (Beijing) Consulting Co Ltd, the Hiria Group and Beijing Ankong Investment in relation to the potential sale of its wholly owned subsidiary Central Rand Gold (Netherlands Antilles) NV, which owns all the assets of the company.
Central Rand has a range of assets all based in South Africa.
On Tuesday, the company said it has extended the deadlines for all the memorandums to June 12 "to ensure common timetable for all MOU parties and completion of required due diligence by all parties," said Central Rand.
Central Rand said the planned visits to the company's site by the interested parties which was due to take place in February, were also delayed by mutual agreement.
In the meanwhile, the company is currently focused on open pit mining at the Consolidated Main Reef West mining area. The company mined 8,471 tonnes of ore from slot 7 in January and February and 15,974 tonnes from slot 5. Operations at Slot 5 were temporarily suspended in February to allow the existing stockpile to be reduced, with operations recommencing in March, it said.
Upgrades and maintenance on the plant at the project were completed in January, and the plant processed 19,900 tonnes of ore in February, which led to gold production in the month increasing by 10% year-on-year to 1,145 ounces.
"The low grade Joint Tolling Venture is progressing well with Mintails Limited. This arrangement allows both companies to monetise low grade material within dumps on the company's property that would otherwise be uneconomical to process," said Central Rand.
Central Rand shares were down 6.7% to 12.48 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Central Rand Gold