Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Shares in dual-listed Central Rand Gold (CRG) plunged nearly 13% on Tuesday morning after the company announced that the deadline for the sale of its Netherlands-based subsidiary would be shifted to accommodate the completion of due diligence.
Prospective suitors Hiria, Shengbang Jiabo Consulting, Beijing Ankong Investment and Huili Resources have now been given until June 12 to conclude their due diligence of the wholly owned CRG Netherlands Antilles, which owns CRG’s assets in Gauteng.
The parties had previously, under the terms of memorandums of understanding (MoUs) with the various suitors, planned to complete the due diligence process by March 31 and execute a formal sale agreement by June 12.
“After consultation with all MoU parties, the company has decided to realign the target completion date … to ensure that all parties are working on a common timetable and have the ability to complete their required due diligence,” CRG said in an operational update.
The company believed this would enable the streamlining of the process, while ensuring that the company did not waste resources undertaking the sale.
In line with this, Beijing-based nonexecutive director Jason Hou had been tasked to lead the due diligence process.
ACID MINE DRAINAGE
Meanwhile, CRG also reported on Tuesday that interim measures to strengthen the clarifier rakes at the mine’s high-density sludge (HDS) plant had been completed at the end of February, boosting daily pumping capacity to 72-million litres.
The Trans-Caledon Tunnel Authority started the pumping and treatment of 63-million litres a day of acid mine water from the mine in May 2014. At full capacity, the HDS plant would treat 84-million litres a day.
CRG said the water level had now reached 142 m below surface, an improvement on the water level of 175 m below surface in May 2014.
“This is very encouraging as it, once again, proves that the Central basin can be dewatered, even during the typical ‘rainy season’,” the company said.
However, owing to the water level, underground mining remained suspended, with CRG’s focus on openpit mining in the tenement area. This had delivered 8 471 t of ore from slot seven and 15 974 t of ore from slot five in the first two months of this year.