| Thu 1 Nov 2007, 10:00 | | CRD - Central Rand Gold Limited - Abridged prospec |
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CRD
CRD - Central Rand Gold Limited - Abridged prospectus
Central Rand Gold Limited
(formerly Central Rand Gold Consols Limited)
(Incorporated as a company with limited liability under the laws of Guernsey
(Company number 45108))
(Incorporated as an external company with limited liability under the laws of
South Africa, registration number 2007/019223/10)
LSE share code: CRND
JSE share code: CRD & ISIN: GG00B24HM601
("Cenrand" or "the Company")
ABRIDGED PROSPECTUS
The Listing of 246 599 650 ordinary shares of 1 PENCE each in the share capital
of Cenrand
1. Introduction
Cenrand has applied for admission to the Official List of the UK Listing
Authority and to trading on the main market of the London Stock Exchange
plc, and for a simultaneous secondary listing on the Main Board of the JSE
Limited ("JSE") of 246 599 650 ordinary shares of 1 pence each
("Admission").
Cenrand has undertaken a private placement of 60 000 000 Shares of 1 pence
each at 125 pence per share with certain institutional and professional
investors in the United Kingdom, South Africa and certain other European
jurisdictions (the "Placing"). The Placing is conditional on Admission.
Prior to the placing, Cenrand had an issued share capital of 186 599 650
ordinary shares of 1 pence each.
It is expected that Admission will become effective and that dealings in
the Shares will commence simultaneously on the London Stock Exchange plc
and JSE at 10.00 SA time (08.00 London time) on 8 November 2007.
The Company was incorporated in Guernsey on 12 July, 2006 with registration
number 45108 under the Companies (Guernsey) Law 1994 - 1996, as amended, as
a company limited by shares with the name Central Rand Gold Consols
Limited. It subsequently changed its name to Central Rand Gold (Guernsey)
Limited on 8 December 2006 and then to Central Rand Gold Limited on 12
January 2007. The Company was registered as an external company by the
South African Registrar of Companies on 10 July 2007 with registration
number 2007/019223/10.
2. Business of the Company
2.1 Overview
Cenrand is a company focused on gold prospecting in the Central Rand
Goldfield of South Africa with the goal of becoming a substantial gold
producer.
The Company and its subsidiaries (the "Group") was established in June 2007
as a result of the restructuring of Rand Quest Syndicate Limited ("RQS")
and its subsidiaries (the "RQS Group").
In addition to being the holder of certain other New Order prospecting
rights, the RQS Group has contracts to acquire certain New Order
prospecting rights which will be transferred into the Group upon the
approval of the South African Department of Minerals and Energy ("DME"),
pursuant to Section 11 Applications. These comprise eight contiguous New
Order prospecting rights, located immediately to the South of Johannesburg
and a large area comprising one New Order prospecting right application
located immediately to the south. The eight New Order prospecting rights
from west to east are: Western Areas A, B and E, Consolidated Main Reef,
Langlaagte, Crown Mines, Anglodeeps, Village Main, Robinson Deep, City Deep
and Simmer & Jack (the "Prospecting Rights"). The Prospecting Rights extend
over an area from west to east along strike of about 40 kilometres and
north to south of about 7 kilometres (the "Central Rand Project"). In
addition, the Southern Deeps New Order prospecting right application (the
"Prospecting Application"), if granted, would extend the Central Rand
Project by a further 13 kilometres to the south.
The establishment of the Group has enabled Puno Gold Investments
(Proprietary) Limited ("Puno") to become a 26 per cent. shareholder in
Central Rand Gold South Africa (Proprietary) Limited ("CRGSA"), the Group`s
operating subsidiary, which was an important part of the Group becoming
compliant with South Africa`s black empowerment legislation as required by
the Mineral and Petroleum Resources Development Act, 28 of 2002 ("MPRDA").
Consequently the Company, through a wholly-owned subsidiary, holds 74 per
cent. of the issued share capital of CRGSA.
2.2 Central Rand Goldfield
Between 1886 and the early 1970s the Central Rand Goldfield is estimated to
have produced some 247 million ounces of gold at a reported average head
grade (run of mine grade) of 8.2 g/t. Most of the old mines closed in the
late 1960s and early 1970s as they were considered uneconomic at the
prevailing gold price.
The Group has identified the potential for further exploitation of the
Central Rand Goldfield in the current gold price environment using modern
exploration, mining and processing technologies.
2.3 Central Rand Project Resource Estimates
The table below is Snowden Mining Industry Consultants PTY Limited`s
compilation of the classified Mineral Resource estimate of the Central Rand
Project as presented in the Competent Persons` Report. The resource
estimates have been prepared to the Australasia Code for Reporting of
Mineral Resources and Ore Reserves 2004 ("JORC") standard.
Central Rand Project Mineral Resource Estimate, July 2007
Indicated Inferred
Reef Mt g/t Au Moz Au Mt g/t Au Moz Au
Main Reef 39.4 6.3 8.0 16.2 7.3 3.8
Main Reef Leader 35.6 11.7 13.4 9.9 12.6 4.0
Pyritic Quartzite - - - 0.9 45.0 1.3
South Reef - - - 5.3 6.0 1.0
Bird Reef - - - 9.4 3.8 1.1
Kimberley Reef - - - 10.4 3.3 1.1
Total 75.0 8.9 21.4 52.1 7.4 12.4
Note: Totals may not add up exactly due to rounding
The Group is engaged in further exploration and development activity with the
objective of finding additional gold resources and upgrading resources to
reserves.
2.4 Current activities and prospects
In late 2006 the RQS Group commenced a shallow drilling exploration
programme to identify the most important and immediately available shallow
gold mining opportunities within the Central Rand Project.
The Group has, currently, selected nine areas that warrant further
assessment for shallow mining operations. These areas, termed "slots" by
the Group, are located over the Main, Bird and Kimberley Reefs. Currently
the exploration programme is targeting the Kimberley Reef sequence on
Consolidated Main Reef. Whilst this programme is continuing, none of the
exploration results have been used in the resource estimates presented in
the table above because of the slow turn-around in processing assays.
The Group, through its consultants has undertaken conceptual mine planning
and processing studies to support Ferreira Estate and Investment Company
Limited`s ("FEIC") New Order mining right application ("FEIC Mining Right
Application") for Consolidated Main Reef, Langlaagte, Crown Mines and City
Deep within the Central Rand Project which was submitted to the DME on 25
July 2007 and formally accepted (although not yet approved) on 10 August
2007. The Company submitted an updated conceptual study to the DME on 1
October 2007. The FEIC Mining Right Application is currently awaiting
approval by the DME. The Group has a contractual entitlement to acquire the
entire issued share capital in FEIC upon ministerial approval being granted
to a Section 11 Application. In so doing, the Group will ultimately become
the holder of the mining right. The Group intends to continue updating and
refining this work in order to complete a definitive feasibility study by
the end of the first quarter of 2008 covering the initial intended gold
production.
As at 23 September 2007, the Group had completed some 36,076 metres of
drilling and had submitted 75,003 samples to South African National
Accreditation Systems ("SANAS") accredited laboratories for assaying.
However, of the samples submitted, 50 per cent. have been returned to the
Group due to capacity constraints being experienced in the mining industry.
2.5 Key strengths
The Directors believe that the Group`s key strengths include:
- the Central Rand Project being a large prospecting area in a known gold
producing region
- 270km2 brown-field area
- additional 400km2 in respect of the Prospecting Application
- 33.8m oz JORC compliant gold resource base
- the ability to utilise existing mine infrastructure to reduce exploration
costs and expedite exploration activity
- the contiguity of the Prospecting Rights facilitates the development of
surface and subsurface mining operations
- targeting near term gold production
- 500,000oz pa production by 2010; 1 million oz pa by 2012
- an experienced Board and management team with significant mining expertise
- being fully BBBEE compliant with its partner, Puno
- the availability of infrastructure and labour in Johannesburg
3. Directors of Cenrand
Name Nationality Age Position
Mr Alastair Mackenzie Dual Australian/British 50 Non -Executive Chairman
Walton
Mr Gregory James South African 43 Chief Executive Officer
Mr Michael Sullivan Australian 55 Chief Operating Officer
Mr Riccardo Vittino Australian 47 Chief Financial Officer
Mr Sedupe Ramokgopa South African 68 Executive Director
Corporate Affairs
Mr Nicholas Farr-Jones Australian 45 Non -Executive Director
Mr Robert Kirkby Australian 60 Non -Executive Director
Mr Miklos Salamon British 52 Non -Executive Director
Each of the Directors can be contacted at the Company`s principal place of
business, Sydney Vane House, Admiral Park, St Peter Port, Guernsey.
4. Prospectus
This abridged prospectus is not a full prospectus. Copies of the full prospectus
will, following publication, be available from the Company`s registered office
and from the office of Evolution Securities Limited at 100 Wood Street, London,
UK, EC2V 7AN and the office of Central Rand Gold SA at 6 - 10 Riviera Road,
Block C, Houghton, Johannesburg, South Africa, 2193, during normal business
hours from date of publication for a period of one month.
Guernsey
1 November 2007
Corporate adviser and sponsor in South Africa
MACQUARIE
Date: 01/11/2007 10:00:01 Produced by the JSE SENS Department.
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