Snag causes de­lay in loan trans­fer

The Star Late Edition - - COMPANIES -

CEN­TRAL Rand Gold said yes­ter­day that the trans­fer of the sec­ond tranche of $500 000 (R6.6 mil­lion) of the $1m loan agree­ment with one of its share­hold­ers, Jia Bang Wang, had been de­layed due to cer­tain ex­change re­stric­tions. In Jan­uary, the strug­gling min­ing com­pany en­tered into a new loan agree­ment with Wang for fund­ing in the amount of $1m in a bid to re­sume its un­der­ground op­er­a­tions. Wang al­ready owns 9.48 per­cent share­hold­ing at Cen­tral Rand Gold. The miner said the loan would pro­vide the com­pany with suf­fi­cient work­ing cap­i­tal for the im­me­di­ate fu­ture and for the pro­cure­ment, ship­ping, in­stal­ment and com­mis­sion­ing of a Con­cen­tra­tor Cir­cuit. De-wa­ter­ing has pre­vented the com­pany from restart­ing any un­der­ground min­ing op­er­a­tions since they were halted in 2014. Af­ter se­cur­ing the loan agree­ment, Cen­tral Rand Gold in Fe­bru­ary re­solved to pro­cure a Con­cen­tra­tor Cir­cuit to up­grade the gold grade of the Mine Waste Dumps ma­te­ri­als be­fore fur­ther me­tal­lur­gi­cal pro­cess­ing. The Con­cen­tra­tor Cir­cuit will con­tain cen­trifu­gal con­cen­tra­tors, a scrub­ber, de-wa­ter­ing screens, water/slurry pumps and other an­cil­lary equip­ment. De­spite the set­back of the sec­ond tranche of fund­ing, the miner said it con­tin­ued to work on ex­e­cut­ing the strat­egy of in­stalling cen­trifu­gal con­cen­tra­tors, with the an­tic­i­pated date of com­mis­sion­ing still the third quar­ter of 2017. “As pre­vi­ously an­nounced, the con­cen­tra­tor equip­ment has been or­dered from China, and the com­pany is pleased to an­nounce that the equip­ment has now been man­u­fac­tured. De­liv­ery to South Africa is ex­pected to oc­cur in mid-June 2017,” the miner said. “The open pit min­ing which started at the be­gin­ning of last month, is con­tin­u­ing, and ma­te­ri­als have been de­liv­ered to the plant for crush­ing, prior to pro­cess­ing. Third party batch toll treat­ment ma­te­ri­als are also be­ing fed to the plant.” – ANA

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