10th Feb 2009 07:00
Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
10 February 2009
Central African Gold Plc ("CAG" or "the Company")
Statement re agreement with Investec Bank Limited
CAG, the AIM traded gold mining and exploration company, is today pleased to announce, subsequent to the announcement made on 14 January 2009, that on 6 February 2009 it entered into a legally binding agreement (the "Agreement") with Investec Bank Limited ("Investec Bank") to cap any further liability to Investec Bank at $5.0 million. This follows the default in January 2009, by Central African Gold Ghana ("CAG Ghana"), a then 100 per cent. owned subsidiary of CAG, on the Investec Bank loan facility and the subsequent transfer of 100 per cent. of the issued share capital in CAG Ghana, the owner of the Bibiani gold mine, to Investec Bank, on 14 January 2009.
Accordingly, as part of the Agreement, CAG has undertaken to pay Investec Bank US$5.0 million within six weeks of the signing of the Agreement.
CAG intends that the funds required to make the payment, together with sufficient short term working capital to secure the Company's remaining operations (in Mali and Zimbabwe) will be raised via an Open Offer to shareholders (the "Open Offer").
A further announcement with regard to the Open Offer will be made in due course.
All capitalised terms in this announcement have the same meaning as those defined in the announcement made on 14 January 2009.
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)11 676 2500 |
|
Stuart Faulkner / James Spinney |
Strand Partners Limited |
Tel: +44(0)20 7409 3494 |
|
Martin Eales |
RBC Capital Markets |
Tel: +44(0)20 7029 7881 |
|
Hugo de Salis / Felicity Edwards |
St Brides Media and Finance Ltd |
Tel: +44(0)20 7236 1177 |
Related Shares:
Canal+