5th Feb 2016 08:39
LONDON (Alliance News) - Central Rand Gold Ltd on Friday said it is raising GBP1.2 million through an equity subscription deal.
The company said it plans on issuing just shy of 35.0 million new shares at 3.5 pence per share. It has already allotted 14.3 million new shares, and requires shareholder permission to issue the remainder. The shares have been conditionally subscribed for by a number of high-net-worth individuals including the principal of Zhejiang Golden Machinery Plant.
"The proceeds of the subscription will be used primarily to strengthen the company's balance sheet and provide working capital in order to undertake continued surface mining operations, identify and source further plant feed material and facilitate a programme of plant upgrades and efficiency processes to further improve plant availability and recovery rates," Central Rand Gold said.
The move comes just weeks after the company terminated talks with four Asian investor groups for the sale of Central Rand Gold (Netherlands Antilles) NV, amid uncertainty over falling commodity prices and a tough time for the junior mining sector.
Shares in Central Rand Gold were down 11% at 4.25 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Central Rand Gold