14th May 2009 14:00
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Immediate Release |
14 May 2009 |
Central Rand Gold Limited
("Central Rand Gold" or "CRG")
(Incorporated as a company with limited liability under the laws of Guernsey,
Company Number 45108)
(Incorporated as an external company with limited liability under the laws of
South Africa, registration number 2007/019223/10)
ISIN: GG00B24HM601
Share code on LSE: CRND
Share code on JSE: CRD
BEE Update
On February 16, 2009, Central Rand Gold Netherlands Antilles ("CRGNV"), Central Rand Gold's wholly owned subsidiary company which directly holds 74% of the shares in Central Rand Gold SA (Pty) Ltd ("CRGSA"), exercised the call option granted to it in terms of the CRGSA Shareholders Agreement and gave the requisite 90 days' notice to Puno Gold Investments (Pty) Ltd ("Puno"), CRG's Black Economic Empowerment partner to acquire its entire interest in CRGSA. This was owing to Puno's inability to provide funding as required in CRGSA's Shareholder Agreement.
On April 7, 2009, Puno instituted an urgent application with the South Gauteng High Court, Johannesburg, to interdict CRGSA and CRGNV from proceeding with the exercise of the call option pending the final determination by arbitration or a court order of the validity and enforceability of-
the funding call by CRGSA;
the call option furnished by Puno in favour of CRGNV in respect of Puno's shares in CRGSA.
On May 13, 2009, CRGNV and Puno consensually agreed to refer the disputation over the call to an arbitration process. CRGNV is the claimant in these proceedings. CRG and Puno have agreed a timetable for the arbitration and the final outcome will be made an order of the court and will be binding. By agreeing to go through the arbitration process, there will be no further opportunity to approach the South African courts on the substantive issues between the parties and a final resolution will be obtained more quickly than via the ordinary court process.
CRG is still fully compliant with the current legislation relating to Black Economic Empowerment and has continuously kept South Africa's Department of Minerals and Energy abreast with all developments in this regard. CRG is firmly committed to the principles of Broad Based Black Economic Empowerment.
Contact:
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Johan du Toit
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+ 27 (0) 11 551 4000
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Wayne Epstein
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+ 27 (0) 11 551 4000
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Enquiries:
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Evolution Securities Limited
Simon Edwards/Chris Sim/Neil Elliot
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+ 44 (0) 20 7071 4300
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Macquarie First South Advisers (Pty) Ltd
Thato Morojele/Annerie Britz/Melanie de Nysschen
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+ 27 (0) 11 583 2000
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Buchanan Communications Limited
Ben Willey/Bobby Morse
Jenni Newman Public Relations (Pty) Ltd
Jenni Newman/Megann Outram/Lerato Tlatlane
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+ 44 (0) 20 7466 5000
+27 (0) 11 772 1033
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Related Shares:
Central Rand Gold