JOHANNESBURG (miningweekly.com) – Dual-listed gold miner Central Rand Gold (CRG) is actively seeking new acquisitive opportunities to diversify its commodity portfolio and geographic reach across Africa, with discussions reportedly under way with two parties.

CRG, currently a Witwatersrand, Johannesburg-focused gold miner, was pursuing further near-term production assets, including that of precious metals and precious stones assets across sub-Saharan Africa.

In addition to the work being done to actively pursue near-term gold production opportunities in and around the company’s operation within the Witwatersrand area, the board has resolved to broaden its acquisition strategy to pursue opportunities throughout the African continent.

“While discussions are at a preliminary stage, both opportunities exhibit characteristics which the board considers appealing, namely near-term cash flow potential and low capital start-up costs,” the company said in an update to shareholders on Tuesday.

This emerged as CRG embarked on fund-raising activities through a new bridging finance agreement and additional subscription, entered into joint-venture (JV) agreements and continued discussions for further JV opportunities for its metallurgical plant.

With ongoing discussions with strategic partner Zhejiang Golden Machinery Plant (ZGMP) and the continued progress regarding growth opportunities, the gold miner completed a bridge funding with New York-based institutional fund Bergen Global Opportunity Fund.

The bridge funding raised $598 000, with the potential for an increase of up to $4-million, through combined convertible securities and warrant issuance.

Further, CRG embarked on an additional subscription to raise $200 000 through the issue of 4.6-million new ordinary shares at an issue price of 3p each.

The bridge funding and subscription would be used for general working capital purposes and the installation of a recently acquired refurbished milling circuit.

Meanwhile, the group was mulling the potential of expanding the capacity of its processing plant after inking a JV deal that would likely see the full capacity of the 20 000 t/m metallurgical plant used amid additional talks for further processing opportunities.

The company entered into a binding JV tolling agreement with a third-party supplier of ore for the sourcing and processing of gold-bearing material through the metallurgical plant at CRG.

The agreement allowed for the processing of a minimum of 18 000 t/m of gold-bearing material to be processed through the metallurgical plant from July, with plans to eventually use the plant’s full processing capacity.

Further JV opportunities within the region were being discussed, with the company continuing its work with ZGMP to optimise the existing metallurgical plant with ambitions of increasing tonne throughput and efficiencies, the size and cost of which were still being considered.

“Representatives from ZGMP will be on site at CRG in early June 2016 to progress these opportunities to an investment decision stage,” the company said in a statement.

“Over the past three months, CRG has conferred with ZGMP regarding a potential investment into the company. It is envisaged that the ZGMP investment will be applied to fund the growth initiatives which have been outlined above as well as for general working capital purposes. Discussions regarding the size, structure and timing of the ZGMP investment remain ongoing but are expected to be finalised in the near term,” CRG noted.

Meanwhile, CRG South Africa CFO Lola Trollip has been appointed as CEO of the local subsidiary, effective immediately, following the retirement of Allen Phillips as nonexecutive director and interim CEO.