4th Jun 2010 12:00
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.
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For further information please visit www.centralafricangold.com or contact:
Roy Pitchford / Craig Campbell
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Central African Gold Plc |
Tel: +44(0)77 9390 9985 Tel: +27(0)11 317 3654 |
Stuart Faulkner / James Spinney
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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.
Related Shares:
Canal+