Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

Extension of maturity date for loan agreements

4th Jun 2010 12:00

RNS Number : 0950N
Central African Gold PLC
04 June 2010
 



Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining

4 June 2010

Central African Gold Plc ('CAG' or 'the Company')

Extension of maturity date for loan agreements

 

Central African Gold Plc, the AIM quoted gold mining and exploration company, announces that ECP Africa Fund II PCC ('ECP') and HBD Zim Investments Limited ('HBD') have agreed to extend the terms of the loans made available to the Company, as announced by CAG on 12 February 2010, amounting to US$705,070 and US$302,732 respectively. These loans now have a new maturity date of 29 April 2012 (previously 29 April 2011) and there have been no other changes to the terms of these loans.

 

In addition, Investec Asset Management (Pty) Limited ('IAM'), ECP and HBD have agreed to extend the terms of the convertible loans made available to the Company, as announced by the Company on 24 December 2009, amounting to US$147,662, US$705,070 and US$397,267 respectively. These convertible loans now have a new maturity date of 29 April 2012 (previously 29 April 2011) and there have been no other changes to the terms of these convertible loans.

 

IAM and ECP have agreed further to extend the terms of the loans made available to the Company, as described in a circular sent to shareholders on 27 March 2009, amounting to US$2.2 million and US$1.8 million respectively. These loans now have a new maturity date of 29 April 2012 (previously extended to 29 April 2011 from 14 April 2010 or within five days of the receipt of funds by the Company from the sale of its entire shareholding in Mali Goldfields SA and Songhoï Resources SA, as announced on 24 December 2009) and there have been no other changes to the terms of these loans.

 

The Board confirms that funds received under these various loan agreements are being applied to CAG's Zimbabwean operations and to support the Company's general working capital requirements. The Company is continuing to seek debt finance from a number of sources to support further CAG's working capital requirements. Accordingly, a further announcement on the progress of the debt finance process will be made in due course.

 

As ECP, HBD and IAM are substantial shareholders in the Company, the extension to these various loan agreements are classified as related party transactions in accordance with the AIM Rules. Accordingly, the independent directors, being Roy Pitchford and Craig Campbell, having consulted with Strand Hanson Limited, the Company's nominated adviser, consider the terms of the amended loan agreements to be fair and reasonable insofar as the Company's shareholders are concerned. In providing its advice, Strand Hanson Limited has taken into account the independent directors' commercial assessments.

 

* * ENDS * *

 

 

For further information please visit www.centralafricangold.com or contact:

 

Roy Pitchford / Craig Campbell

 

Central African Gold Plc

Tel: +44(0)77 9390 9985

Tel: +27(0)11 317 3654

Stuart Faulkner / James Spinney 

 

Strand Hanson Limited

Tel: +44(0)20 7409 3494

Hugo de Salis / Felicity Edwards

St Brides Media and Finance Ltd

Tel: +44(0)20 7236 1177

 

 

Notes to Editors 

Central African Gold Plc is an established gold mining company with a portfolio of production and exploration assets in Africa. The Company has two subsidiaries in Zimbabwe: Falcon Gold Zimbabwe Limited (84.7 per cent. owned) and Olympus Gold Mines Limited (100 per cent. owned); and a subsidiary in southern Botswana with a licence covering 430.3km² of the extension of the Kraaipan greenstone belt from South Africa.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCBGGDLSUGBGGS

Related Shares:

Canal+
FTSE 100 Latest
Value8,596.14
Change53.58