7th Sep 2015 11:13
LONDON (Alliance News) - Central Rand Gold Ltd said Monday that talks with two Asian investors groups over the potential sale of its Dutch subsidiary are continuing, although it warned that the progress of discussions has "slowed over the past several weeks."
The company is in talks with Hiria Group Co Ltd and Huili Resources Group Ltd, and said the major due diligence phase of the transaction was largely completed in June. Recent talks with the two have focused on commercial issues, with some minor technical talks related to the de-watering of the Central Basin in South Africa, which its assets cover, continuing.
Talks with Hiria have migrated from the acquisition of the Dutch subsidiary to a significant initial strategic investment in Central Rand Gold to increase its gold production capacity and upgrade its resource base, Central Rand Gold said. Talks with Huili still contemplate the acquisition of the Dutch subsidiary, but have slowed in recent weeks.
It cautioned that there can be no certainty talks with either party will lead to a binding agreement, the sale of the subsidiary or any other transaction.
Shares in Central Rand Gold were down 6.0% at 11.05 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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