Facility Agreement
17 August 2010 - 4:00PM
UK Regulatory
TIDMCAN
RNS Number : 1631R
Central African Gold PLC
17 August 2010
Central African Gold Plc / Ticker: CAN / Market: AIM / Sub-sector: Gold Mining
17 August 2010
Central African Gold Plc ('CAG' or 'the Company')
Facility Agreement
Central African Gold Plc, the AIM quoted gold mining and exploration company, is
pleased to announce that, on 12 August 2010, it entered into a loan facility
agreement with its major shareholder, New Dawn Mining Corp. ('NDM') ('the
Facility Agreement'), to provide CAG with up to US$2.0 million to support its
Zimbabwean mining operations.
The funds made available under the terms of the Facility Agreement will be made
available to both Falcon Gold Zimbabwe Limited (84.7 per cent. owned by CAG) and
to Olympus Gold Mines Limited (100 per cent. owned by CAG) to support both
subsidiaries' ongoing operational and working capital requirements.
The Facility Agreement does not have a maturity date and is repayable on demand.
As NDM is a substantial shareholder in the Company, the Facility Agreement is
classified as a related party transaction in accordance with the AIM Rules.
Accordingly, the independent director, being Roy Pitchford, having consulted
with Strand Hanson Limited ('Strand Hanson'), the Company's nominated adviser,
considers the terms of the Facility Agreement to be fair and reasonable insofar
as the Company's shareholders are concerned. In providing its advice, Strand
Hanson has taken into account the independent director's commercial assessments.
* * ENDS * *
For further information please visit www.centralafricangold.comor contact:
+-------------+------------------------+---------------------+
| Roy | Central African Gold | Tel: +44(0)77 9390 |
| Pitchford | Plc | 9985 |
+-------------+------------------------+---------------------+
| Stuart | Strand Hanson Limited | Tel: +44(0)20 7409 |
| Faulkner / | | 3494 |
| James | | |
| Spinney | | |
+-------------+------------------------+---------------------+
| Hugo de | St Brides Media and | Tel: +44(0)20 7236 |
| Salis / | Finance Ltd | 1177 |
| Felicity | | |
| Edwards | | |
+-------------+------------------------+---------------------+
Notes to Editors
CAG
Central African Gold Plc is a gold mining company with a portfolio of
production, development and exploration assets primarily in Zimbabwe, where the
Company operates through two subsidiaries, Falcon Gold Zimbabwe Limited (84.7
per cent. owned) and Olympus Gold Mines Limited (100 per cent. owned). Through
these subsidiaries CAG has four main gold mines, the Dalny, Old Nic, Golden
Quarry and Camperdown mines, which arelocated in the highly prospective Kadoma,
Shurugwi and Bulawayo gold regions in Zimbabwe.
NDM
The Company's 88.68% shareholder is TSX listed New Dawn Mining Corp. a gold
company with a broad portfolio of production and exploration assets also in
Zimbabwe. NDM owns and operates the Turk and Angelus Mines in the upper
southwest area of Zimbabwe which it believes have the potential to produce an
estimated 35,000 to 50,000 ounces of gold per annum. It is NDM's objective to
orchestrate the development of CAG's mining operations and exploration
portfolio, as well as its own, to become a mid-tier gold producer focussed in
Zimbabwe, with a consolidated annualised gold production to between 50,000 and
60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces by
2014, and then ultimately to 200,000 to 250,000 ounces.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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