1st Sep 2014 11:29
LONDON (Alliance News) - Central Rand Gold Ltd Monday said it has entered into a strategic partnership with Zhejiang Golden Machinery Plant, aimed at determining whether Zhejiang can assist in the upgrade and optimisation programme currently underway at Central Rand Gold's metallurgical plant.
Zhejiang has a record of identifying emerging gold producers and assisting them with their growth and development through the provision of customised plant and machinery.
Central Rand Gold said the deal would lead to a potentially lower capital cost for ongoing improvements to its existing metallurgical plant, coupled with a more effective roll-out of a "string of pearls development strategy" across Central Rand Gold's significant resource base.
The company said it will review with Zhejiang the current upgrade and optimisation roll-out for the existing metallurgical plant to ascertain whether Zhejiang can supply the appropriate plant and machinery at a competitive price.
Zhejiang will also look to assist in expediting the planning, design, engineering and construction of the above ground plant.
Should Zhejiang provide Central Rand Gold with any equipment or services, Central Rand Gold can elect to pay Zhejiang by issuing Central Rand Gold shares rather than paying in cash. This option would have the benefit of reducing balance sheet strain while aligning the interests of Central Rand Gold and Zhejiang, the company said.
Central Rand Gold shares were quoted down 9.5% at 11.50 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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