| Mon 16 Feb 2009, 12:00 | | CRD - Central Rand Gold Limited - BEE Developments |
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CRD
CRD
CRD - Central Rand Gold Limited - BEE Developments
Central Rand Gold Limited (`CRG` or `the Company`)
(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 2007/0192231/10)
ISIN: GG00B24HM601
Share code on LSE: CRND
Share code on JSE: CRD
BEE Developments
From the time of CRG`s flotation in November 2007, CRG has fulfilled the
requirements for full Broad-Based Black Economic Empowerment ("BBBEE") under the
South African Mineral and Petroleum Resources Development Act, 2002 ("MPRDA")
and the South African Mining Charter, ahead of the 5 year timetable envisaged
for full compliance, with Puno Gold Investment (Pty) Ltd ("Puno") acting as the
BEE partner.
Under the arrangements in force, Central Rand Gold SA ("CRGSA"), the main
operating subsidiary of the Company, can call upon its shareholders for funding
of ongoing exploration and development activities in proportion to the
shareholdings held in CRGSA.
Throughout 2008 and as noted in CRG`s results for the year ended 31 December
2007, CRGSA has been in discussions with Puno, as a 26 per cent shareholder in
CRGSA, over funding arrangements and also the make-up of the parties interested
in Puno as a body representing a broad base of historically disadvantaged South
Africans.
As detailed in CRG`s flotation prospectus, Puno was considered an appropriate
partner for CRGSA as it was believed to be well placed to facilitate dialogue
with local communities regarding socio-economic upliftment programmes and
environmental sustainability. During the course of CRGSA`s unprecedented
community and social consultation programme of 2008, CRGSA held various
community meetings where as many as 20,000 people attended.
To date, Puno has neither fulfilled its funding obligations stipulated in the
shareholder`s agreement nor demonstrated its commitment to the communities it
was expected to represent, as it has not attended any of the community and
social consultation meetings.
Subsequently, Central Rand Gold Netherlands Antilles ("CRGNV"), the Central Rand
Gold Group company directly holding shares in CRGSA, has on 16 February 2009
exercised the call option granted to it in terms of the CRGSA Shareholders
Agreement and given the requisite 90 days` notice, as provided for under the
shareholder`s agreement to acquire Puno`s entire interest in CRGSA. This
shareholding will be held in trust pending the outcome of discussions relating
to new BBBEE arrangements with other interested parties who have clearly stated
commitment to ensuring a broader based community involvement in the Central Rand
project.
The future changes in the BBBEE arrangements will not have any effect upon CRG
achieving its initial target annualised production of 100,000ozpa by the end of
2009, or the planned ramp up of production beyond 100,000ozpa in 2010.
Commenting on the changes in the BBBEE arrangements Alastair Walton, Chairman of
CRG stated:
"The CRG project is of fundamental importance to the Johannesburg and Gauteng
region. It will create a whole new generation of mining and associated
businesses in the area. It has always been CRG`s strategy to maximise the
considerable opportunities for the local communities which this project will
bring. As such, we are committed to ensuring that our BBBEE is precisely what
it is meant to be - broad based and for the benefit of the communities and all
the stakeholders involved in this exciting project."
Issued on behalf of: Central Rand Gold Limited
Date: 16 February 2009
Contact:
Johan du Toit +27 (0) 11 551 4000
Wayne Epstein +27 (0) 11 551 4000
Enquiries:
Evolution Securities Limited +44 (0) 20 7071 4300
Simon Edwards / Chris Sim / Neil Elliot
Macquarie First South Advisers (Pty) Ltd +27 (0) 11 583 2307
Thato Morojele / Annerie Britz
Buchanan Communications Limited +44 (0) 20 7466 5000
Bobby Morse / Ben Willey
Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 772 1033
Jenni Newman / Megann Outram
Date: 16/02/2009 12:00:01 Produced by the JSE SENS Department.
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