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Central Rand in serious financial position

05 October 2017 14:58

Central Rand Gold has reaffirmed the seriousness of its financial position, with debt commitments to Redstone Capital and the Wang family amounting to $9.8m in aggregate, which could be called at any time.

Additionally, the Company and its subsidiaries have trade and other creditors amounting to a further $7.8m in aggregate.

Central Rand said in a statement:

"Whilst Central Rand Gold South Africa Proprietary Limited's operations have stabilised operationally, the financial and operational positions remain fragile. There is a very thin working capital position at the operating company level with a negative position within the Company, as mentioned above. The Company's production for the period 1 January 2017 to 30 June 2017 was 2 320 Troy Ounces.

"The Company's overall financial position is negative and the directors are now actively exploring urgent financing options. In order to remain a listed, operational mining group, in steady state and with a view to achieving medium-term profitability, the directors consider that a cash injection of not less than US$ 20 million would be required. The directors consider that this is very unlikely to be forthcoming in the near future or at all. Accordingly, the directors are actively pursuing options which would involve retaining its listings but will require the disposal of the Company's interests in its immediate subsidiary company, Central Rand Gold (Netherlands Antilles) NV, unless it is able to secure sufficient alternative finance at the required level in the very near future."

Story provided by StockMarketWire.com

Related Company: CRND

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